Bitcoin performed relatively better but still saw a 5% decline over the past 24 hours, trading just above $95,000.
The broader crypto market began to experience a steady pullback late in the weekend, with the downturn accelerating into Monday’s U.S. evening hours, leading to significant losses across much of the sector.
As of the latest update, Bitcoin (BTC) had fallen back to just above $95,000, representing a 5% drop in the last 24 hours, while Ether (ETH) dropped by 10%, settling at $3,590. The CoinDesk 20 Index also saw a decline of over 8%, with notable losses including roughly 20% drops for Cardano (ADA), Avalanche (AVAX), and XRP (XRP).
CoinGlass data revealed that more than $750 million in leveraged derivatives positions were liquidated across digital assets over the past day, the majority of which were bullish positions. This liquidation event is almost on par with the crash on August 5 and follows the sharp drop from last Thursday, when Bitcoin plummeted from over $100,000 to $90,000.
There are indications of a potential slowdown in the market, with decreasing exchange volumes and long-term holders taking profits, according to 10x Research. “This could be a brief consolidation before the bull market resumes,” said Markus Thielen, founder of 10x Research, in a Monday report. “Traders should now focus on which assets are performing well and which are underperforming as we enter a phase where not all assets will continue to rise.”
Options market traders are increasingly betting on sideways price action through the end of the year, taking profits on earlier bullish positions and possibly rolling them over into the new year. Digital asset hedge fund QCP noted in a Monday report, “While we remain structurally bullish, spot prices are likely to remain range-bound through the holiday season.”
