Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
- BTC-USD-1.09%
- ETH-USD-1.68%
- CL=F+2.29%
-
Bitcoin, Ethereum and semiconductor-linked perpetual futures suffered sudden weekend declines, with one report estimating nearly $34 million in AI-related liquidations.
-
The selloff revived fears of another Black Monday on Oct. 19, the 39th anniversary of the historic 1987 stock market crash.
-
Rising oil prices, expectations of higher interest rates and weakening stock market breadth have complicated the outlook, although the latest market data shows signs of recovery.
Crypto traders entered Monday, Oct. 19, facing renewed fears of a broader market selloff after Bitcoin, Ethereum and perpetual futures tied to artificial intelligence stocks experienced abrupt weekend price swings.
The volatility triggered widespread discussion of a potential “Black Monday” across Crypto Twitter, with traders questioning whether the moves signaled further trouble when traditional financial markets reopened.
Bitcoin (BTC) briefly fell by about $1,000 before recovering, while Ethereum (ETH) declined from around $2,420 to $2,360 before rebounding to about $2,410.
The sharper disruption occurred in derivatives linked to semiconductor companies, where sudden declines forced leveraged traders out of their positions.
However, the weekend selloff was not accompanied by a confirmed market-wide crash, and subsequent price recoveries suggested that some of the initial selling pressure had eased.
AI Stock Perpetuals Trigger Millions in Liquidations
The most unusual feature of the weekend volatility was the simultaneous decline in cryptocurrency prices and derivatives tracking traditional technology stocks.
On Oct. 17, perpetual contracts linked to semiconductor companies, including Micron, SanDisk, and SK Hynix, experienced sharp price declines while US stock exchanges were closed.
Trading data cited by CryptoVank showed some memory-chip perpetuals falling by 5% to 7% in approximately 10 minutes.
These products trade continuously on cryptocurrency infrastructure, meaning investors can speculate on traditional equity prices even when the underlying stock exchanges are closed.
The selloff reportedly generated approximately $33.8 million in liquidations across AI-related positions
A broader estimate published by TokenPost placed liquidations at $51.6 million over a 10-minute period, including approximately $38.1 million in leveraged long positions.
Most affected contracts subsequently recovered a substantial portion of their losses.
Why October 19 Revived Black Monday Fears
Source: finance.yahoo.com