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The cryptocurrency market fell sharply on Monday, losing around $136 billion in value in a few hours as Bitcoin dropped below a crucial price level and leveraged trades were forced to close. The total crypto market capitalization fell about 3.7% to $2.93 trillion, according to market data.
Bitcoin Leads Declines
Bitcoin, the world’s largest cryptocurrency, fell after failing to hold the $88,000 support level, sliding to around $85,000 before stabilizing. The move triggered selling across the broader market.
Ethereum, the second-largest token, dropped more sharply, falling around 6.1% to about $2,932. BNB slipped nearly 3.9% to $854, while XRP declined about 6.5% to trade near $1.86. Solana fell around 3.7% to $126, and Dogecoin lost about 5.5%, trading close to $0.13.
Leveraged Trades Worsen Sell-Off
The sell-off was intensified by the liquidation of leveraged positions. Nearly $381 million in long positions were wiped out as prices fell, forcing automatic sales and accelerating losses.
Analysts said heavy use of leverage has made the crypto market more volatile than traditional financial markets. By comparison, the S&P 500 was down just 0.3% during the same period.
Analysts See Range-Bound Market
Analyst Michaël van de Poppe said the overall direction of the crypto market remains unclear despite the correction.
He observed similarities to previous market pullbacks, including those seen in early 2025, where prices consolidated before gradually recovering.
Important levels to watch include $3.2 trillion as resistance and $2.85 trillion as support for the total crypto market, he said.
Mining Sector Adds Pressure
Bitcoin miners are also facing rising costs, with average production expenses estimated at around $74,600 per Bitcoin, while total costs including equipment depreciation may reach $130,000.
Several mining firms have begun shifting toward AI data center hosting to offset declining profitability, adding another layer of uncertainty to the sector.