On Christmas Day, according to Gate market data, the Bitcoin price stood at $87,836.6, posting a modest 1.01% gain over the past 24 hours.
On October 11, Bitcoin plummeted nearly 5% within just three hours, dropping abruptly from around $91,500 to a low of $86,950, all without any major news catalyst.
This sharp drop, dubbed the "Sunday slam," triggered a chain reaction: in the past 24 hours, total crypto liquidations across the market reached $309 million, with $267 million coming from long positions, impacting more than 91,000 traders.
01 Market Snapshot: Christmas Calm and the Sunday Storm
On Christmas Day, Gate market data showed Bitcoin holding steady near $87,836.6, with a 24-hour increase of 1.01%.
Turning back to the Sunday crash (October 11), the market experienced a dramatic three-hour plunge. Bitcoin, which had traded near $91,500 for most of the weekend, suddenly tumbled, hitting $86,950 on Gate—a nearly 5% drop.
Such sudden flash crashes are not new to the crypto market. As analysts have noted, "As we’ve seen countless times this year, Friday and Sunday nights often bring significant volatility to cryptocurrencies."
02 Data Perspective: Liquidation Wave Sweeps the Crypto Market
Sunday’s price crash led directly to widespread forced liquidations. On October 11, total market liquidations hit $309 million.
Long positions dominated these liquidations, accounting for $267 million, while short positions saw $42.346 million liquidated. That means nearly 90% of liquidations involved bullish bets.
Breaking it down by asset, Bitcoin long liquidations totaled $101 million, with short liquidations at $13.4905 million; Ethereum long liquidations reached $66.6685 million, and shorts totaled $8.3525 million.
The largest single liquidation occurred on the Hyperliquid exchange, where a BTC-USD position was force-liquidated for $7.92 million.
03 In-Depth Analysis: Three Key Drivers Behind Bitcoin’s Crash
This sudden "Sunday slam" was not the result of a single factor, but rather a convergence of multiple market forces.
Extreme market fragility was the primary driver. Before the crash, the Crypto Fear & Greed Index had already dropped to 24, signaling "extreme fear." This sentiment set the stage for sharp price swings.
A wave of major options expiries in the derivatives market added to the tension. Data showed that on Friday, $28.5 billion worth of Bitcoin and Ethereum options were set to expire on Deribit, representing more than half of the exchange’s total open interest.
Thin liquidity amplified the volatility. Weekend trading sessions typically see lower liquidity, so any sudden selling pressure can be magnified, triggering cascading liquidations.
04 Market View: Bull-Bear Tug-of-War and Future Outlook
Analysts are divided on the implications of this flash crash. Some see it as a necessary structural adjustment, while others view it as short-term volatility.
Kobesi Letter attributed the crash to "a sudden surge in sell volume, which triggered a domino effect of selling, further exacerbated by historic levels of leveraged position liquidations."
Some analysts remain optimistic. They argue that Sunday’s drop actually cleared out excess leverage, paving the way for healthier gains. "Downside liquidity is absorbed first, which is exactly what we want to see," said analyst "Sykodelic."
From a technical analysis standpoint, $88,000 has become a key support level for Bitcoin, while $90,000 is acting as near-term resistance. As long as prices hold above support, the market structure remains constructive.
Long-term fundamentals are showing positive signs. Over the past two days, more than 41,000 Bitcoin have flowed out of exchanges, reducing selling pressure. Ethereum’s exchange reserves have also dropped to multi-year lows, with just 16.2 million ETH remaining.
05 Historical Comparison: Similar Scripts, Different Contexts
This "Sunday slam" shares similarities with previous flash crashes in crypto history, but it’s unfolding in a unique market environment.
Looking back to October 2025, the crypto market saw over $3 billion liquidated in just 60 minutes. The scenario was much the same: a sharp price drop triggered forced liquidations of over-leveraged positions, amplifying downward pressure.
Compared to the brutal bear market of November 2018, when Bitcoin plunged 36.57%, the current decline is relatively mild. However, it’s worth noting that in November 2025, Bitcoin fell 17.49%—still the worst November performance since 2018.
These historical events reveal a common pattern: after large-scale liquidations, markets often experience a short-term rebound as forced positions are absorbed and new buyers step in.
Gate market data shows that as of December 25, Bitcoin has been fluctuating between $87,514.2 and $87,961.0. The wounds from Sunday’s crash are slowly healing.
Market analysts are closely watching the critical $88,000 support level. One observer noted that more than 41,000 Bitcoin are flowing from exchanges into long-term holders’ wallets, with exchange reserves at multi-year lows.
Meanwhile, $28.5 billion in options contracts are set to expire this Friday—a massive figure looming over the market. The extreme fear index remains at a low 24, signaling ongoing fragility in market sentiment.
