Bitcoin (BTC) saw a sharp decline from $98,500 to a low of $95,500 late Sunday during U.S. trading hours, erasing some of last week’s gains. The move, attributed to profit-taking as BTC approached the psychological $100K barrier, triggered a broader market sell-off before signs of recovery appeared during early Asian trading on Monday.
BTC’s drop of over 3.5% led to declines in major altcoins, with XRP and Dogecoin (DOGE) falling more than 5%. Solana (SOL), Ether (ETH), Cardano (ADA), and Binance Coin (BNB) registered losses between 2%-5% before stabilizing. The overall crypto market cap shrank by 2.4%, while the CoinDesk 20 Index (CD20), which tracks major tokens, recorded a 1.48% drop in the past 24 hours.
The market showed resilience during Asian hours, reducing the 24-hour losses for major tokens to under 2%. However, crypto futures saw significant liquidations amid heightened volatility, with over $500 million in positions wiped out. This included $366 million in long positions and $127 million in shorts, according to Coinglass. Interestingly, small altcoins and mid-cap tokens accounted for over $100 million in liquidations, signaling increased risk-taking behavior among traders.
Despite the pullback, market analysts remain optimistic. Jeff Mei, COO of crypto exchange BTSE, expressed confidence in Bitcoin’s continued upward trajectory. “The $100K milestone is within reach, likely in the coming week,” Mei stated, emphasizing institutional demand driven by ETFs. He also noted potential interest in Ethereum ETFs and future Solana ETF approvals.
Mei pointed to broader positive factors, including steady stock market gains and promising discussions between the Trump transition team and crypto leaders about pro-digital asset policies. “This sets a strong foundation for the rally to extend into 2025,” he added.
