Crypto Markets See Red as Bitcoin Struggles to Hold Above $100K
The CoinDesk 20 (CD20), an index tracking the largest cryptocurrencies by market capitalization, dropped 3.6% as weakness in major tokens spread to midcaps, which saw declines of up to 10%, according to Coingecko data. Crypto markets started the week on a negative note, with bitcoin (BTC) experiencing a slump during the European morning session after briefly surpassing the $100,000 mark.
BTC fell 2% from its six-figure peak, triggering a broader market decline. Major cryptocurrencies such as XRP, Dogecoin (DOGE), and Solana’s SOL fell by up to 5.5%, while Binance Coin (BNB) and Ethereum (ETH) dropped 2.5%. Cardano (ADA) saw the sharpest loss, plummeting 7%, following a temporary compromise of the Cardano Foundation’s X account on Sunday.
This market slide led to over $300 million in liquidations of bullish positions, as traders betting on higher prices were forced to exit. The CoinDesk 20 index fell 3.6%, and midcap coins, including smaller altcoins and meme tokens, recorded steeper losses than BTC or ETH futures, marking an unusual market pattern. The largest liquidation occurred on Binance, where a DOGE futures trade worth $5.53 million was liquidated.
Market Outlook: Rangebound Until 2025
QCP Capital, a Singapore-based firm, expects the market to remain rangebound until 2025. Despite the downturn, the firm maintains a structurally bullish outlook.
“We still maintain a bullish stance, but we expect spot prices to range for the rest of the holiday season,” QCP Capital said in a Telegram message on Monday. “Historically, ETH doesn’t hit a new all-time high until January of the post-halving year. This is reflected in the options market, where ETH risk reversals are leaning towards calls from January onwards.”
Bitcoin’s Struggles Pose a Challenge
Bitcoin’s failure to maintain its position above $100,000 has raised concerns about the sustainability of the market’s rally.
“Bitcoin’s inability to consolidate above $100K is likely dampening overall market sentiment,” said Alex Kuptsikevich, chief market analyst at FxPro, in a Monday email to CoinDesk. “BTC is currently trading just below $99K with minimal movement overnight. This lack of growth is having a negative effect on altcoins.”
Kuptsikevich believes that Bitcoin’s current stagnation could represent an important market correction, which might help shake off short-term overbought conditions and pave the way for a more stable upward movement. He added, “The next significant momentum could see the price push towards $120K, in line with the Fibonacci extension levels.”
