Bitcoin tumbled 6% on Monday, dropping below $86,000 in early Asian trading as selling surged.
Consequently, Solana, Ethereum, and XRP followed, each losing about 8% amid growing market turbulence.
The market has remained fragile since early October, when leveraged traders lost $19 billion.
Bitcoin Slides Below $86K
Before November, Bitcoin reached an all-time high of $126,251, but it then fell 16.7%.
However, last week Bitcoin briefly recovered past $90,000 as selling pressure eased slightly.
Meanwhile, traders faced losses: 216,942 positions liquidated over 24 hours, totaling $638 million.
Weak Inflows And Corporate Caution
Investors now worry because few dip buyers appear, and Bitcoin ETF inflows remain weak.
Therefore, analysts set $80,000 as the next key support level for cautious trading.
On Friday, Strategy CEO Phong Le warned that the company could sell Bitcoin if mNAV fell below 1x.
Currently, Strategy holds $56 billion in Bitcoin, with mNAV at 1.19, according to reports.
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Additionally, S&P Global downgraded USDT, citing risks that Bitcoin’s decline could leave it undercollateralised.
ETF inflows continue slowly; Bitcoin ETFs gained just $70 million last week, showing limited appetite.
Moreover, corporate holders largely paused purchases; SpaceX moved 1,163 BTC, sparking sale speculation.
Market Caution Persists
The derivatives market reflects caution as futures trade only 4% above spot prices, below the usual 5–10%.
Similarly, options show more puts than calls, indicating traders expect further declines.
Technically, Bitcoin broke below the lower band of a developing bear flag, reinforcing bearish signals.
Furthermore, China’s central bank warned about virtual currency risks and urged closer government oversight.
Investors now await US economic data, which may influence Federal Reserve interest rate decisions.
Meanwhile, President Trump named his Fed chair nominee on Sunday, shaping market expectations for rate cuts.
Overall, Bitcoin remains volatile, with every rally and dip closely watched by traders and institutions.
