Crypto Markets Slide as Bitcoin Retreats Below $100K, Liquidating $300M in Long Positions
The cryptocurrency market kicked off the week on a bearish note, with bitcoin (BTC) dropping below the $100,000 mark during European trading hours after briefly crossing the milestone. The decline triggered a broad sell-off across major and mid-cap tokens.
Bitcoin fell 2% from its six-figure peak, pulling down major cryptocurrencies in its wake. XRP, dogecoin (DOGE), and Solana (SOL) each slid by up to 5.5%, while BNB Chain’s BNB and Ethereum’s ether (ETH) dropped 2.5%. Cardano’s ADA faced the steepest decline among large-cap tokens, plunging 7%, exacerbated by the Cardano Foundation’s X account being temporarily compromised over the weekend.
The sell-off led to over $300 million in liquidations of bullish positions, marking a significant shakeout in the market. Futures tied to smaller altcoins and meme tokens registered larger losses than BTC or ETH futures, an unusual occurrence, according to market data. Binance saw the largest single liquidation, a DOGE futures position worth $5.53 million.
The CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market cap, dropped 3.6%. Mid-cap tokens were hit even harder, with some falling as much as 10%, per Coingecko data.
Singapore-based QCP Capital expects the market to remain rangebound through the holiday season and into the next year. “Although we’re still structurally bullish, spot is likely to range here for the remainder of the holiday season,” QCP noted in a Telegram broadcast on Monday. “Historically, ETH does not usually put in a new all-time high until January of the post-halving year. This sentiment is echoed in the options market, where ETH risk reversals are skewed toward calls starting in January.”
Bitcoin’s failure to sustain momentum above $100,000 has raised questions about the viability of the broader rally. “Bitcoin is failing to consolidate above $100K, likely suppressing buying in the overall market,” FxPro Chief Market Analyst Alex Kuptsikevich said in an email to CoinDesk on Monday.
“Bitcoin is trading just below $99K with minimal overnight movement. Its inability to grow has negatively impacted altcoins,” Kuptsikevich added. He noted that the pullback might serve as a healthy correction, allowing the market to shake off short-term overbought conditions before resuming its upward trend.
Kuptsikevich also suggested that bitcoin’s next bullish wave could target the $120,000 level, supported by Fibonacci extension analysis. “This pause could set the stage for a more reliable move higher,” he concluded.
