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The cryptocurrency market moved lower on Monday, with total market value falling about 2.4% to $3.15 trillion, as traders reduced risk after a recent rally and leveraged positions were forced out.
Bitcoin and Ethereum Lead the Dip
Bitcoin slipped around 2% to trade near $93,100, while Ethereum fell nearly 4% to around $3,215, according to market data.
One of the main drivers of the decline was a wave of liquidations in the derivatives market. More than $127 million worth of Bitcoin positions were liquidated in the past 24 hours, most of them long bets.
When prices dipped, leveraged traders were forced to sell, which added to the downward pressure. This kind of “leverage flush” often happens after strong rallies and can reset the market structure.
Risk-Off Mood Across Markets
The crypto sell-off came as sentiment weakened in traditional markets as well. U.S. stock futures pointed lower, while gold prices rose, signaling a shift toward safer assets.
Ongoing trade tensions between the United States and Europe also weighed on investor confidence, prompting some traders to cut exposure to riskier assets like cryptocurrencies.
Altcoins Underperform Bitcoin
Altcoins saw sharper losses than Bitcoin. Layer-1 tokens and high-risk sectors such as meme coins and DeFi fell between 5% and 13%, pushing the Altcoin Season Index down to 28, a level that favors Bitcoin dominance.
Analysts See Mixed Signals Ahead
Despite the short-term drop, some analysts remain cautious but not overly bearish. Crypto analyst Michaël van de Poppe said Bitcoin’s valuation relative to gold has reached levels last seen near major market bottoms in 2015, 2018, and 2022.
For now, traders are watching whether Bitcoin can hold support near $92,000–$93,000. A strong recovery could calm markets, while another break lower may trigger further selling.
As of now, the move appears driven more by profit-taking and leverage unwinding than a broader collapse in confidence.