Bitcoin showed some outperformance, but still saw a 5% decline in the past 24 hours, trading just above $95,000.
The broader crypto market experienced a slow but steady decline since late over the weekend, which intensified during the early evening U.S. hours on Monday, causing almost the entire sector to fall sharply.
At press time, Bitcoin (BTC) had retreated to just above $95,000, marking a 5% drop over the past 24 hours, while Ether (ETH) was down 10%, trading at $3,590. The broader CoinDesk 20 Index also dropped more than 8% in the same period, with notable declines including approximately 20% drops for Cardano (ADA), Avalanche (AVAX), and XRP (XRP).
According to CoinGlass data, more than $750 million in leveraged derivatives positions were liquidated across all digital assets over the past 24 hours, with the majority being bullish positions. This liquidation volume is comparable to the August 5 crash and just shy of the sharp drop seen last Thursday, when Bitcoin plunged from over $100,000 to $90,000.
There are signs of weakening momentum in the crypto market, including declining exchange volumes and significant profit-taking by long-term holders, as highlighted by analytics firm 10x Research in a Monday morning note. “This may be a brief consolidation phase before the bull market regains momentum,” 10x Research founder Markus Thielen wrote in the report. “However, traders should now focus on identifying which positions are outperforming and which are lagging, as the rally enters a phase where not all assets will continue to rise.”
Traders in the options market appear to be positioning themselves for sideways price action through the end of the year, taking profits from previous bullish bets and possibly rolling positions into the early part of next year. Digital asset hedge fund QCP noted in their Monday morning report, “Although we remain structurally bullish, spot prices are likely to trade within a range for the remainder of the holiday season.”
