Red Monday: Crypto Markets Shed Over $150 Billion as Bitcoin and Altcoins Nosedive

A Sea of Red Engulfs the Crypto Market

The cryptocurrency market experienced a brutal start to the week, with a massive sell-off wiping over $150 billion from the total market capitalization in just 24 hours. Both Bitcoin (BTC) and the broader altcoin market are deep in the red, as a sudden downturn triggered a cascade of liquidations and widespread investor anxiety.

After a relatively stable weekend, Monday morning brought a sharp reversal of fortunes. The total crypto market cap, which was trading comfortably above $4 trillion, has now plummeted, signaling a significant shift in market sentiment.

Bitcoin’s Sharp Rejection and Price Plunge

Bitcoin, the market’s bellwether, led the downward charge. Last week showed promise for BTC, which briefly touched a monthly peak of around $68,000 following the U.S. Federal Reserve’s anticipated interest rate cut. The positive momentum was short-lived, however, as the asset failed to sustain its run.

After consolidating around the $65,000 to $66,000 range over the weekend, Bitcoin faced a harsh rejection. The price tumbled sharply on Monday, breaking through key support levels to hit a 12-day low of $62,000. Although it has staged a minor recovery to around $62,700, BTC remains down approximately 2.6% on the day.

This substantial nosedive had a predictable and painful consequence for leveraged traders.

A $1.7 Billion Liquidation Cascade Adds Fuel to the Fire

The rapid price decline triggered a wave of forced liquidations across derivatives exchanges, totaling a staggering $1.7 billion on a daily scale. When prices fall sharply, traders who have bet on rising prices with borrowed funds (long positions) have their positions automatically closed to cover their losses, an event known as liquidation.

This process adds significant selling pressure to the market, often creating a domino effect that pushes prices even lower—a classic liquidation cascade. Interestingly, despite its price drop, Bitcoin’s market dominance has climbed to 56.4%, indicating that altcoins have suffered even more severe losses.

Altcoins Bear the Brunt of the Sell-Off

While Bitcoin stumbled, the altcoin market bled out. Most alternative cryptocurrencies experienced deeper corrections, amplifying the market-wide panic.

Ethereum (ETH), the second-largest cryptocurrency, was hit hard. A steep 6.4% drop pushed its price well below the $4,200 mark, with the asset briefly dipping towards the critical $4,000 support level earlier today.

Other major altcoins fared no better, with many posting significant single-day losses:

• XRP: Slumped by 5.4%, struggling to hold the $2.80 level.
• Dogecoin (DOGE): Plunged by double digits, falling below the $0.24 mark.
• Major Players: Solana (SOL), Cardano (ADA), Chainlink (LINK), and Avalanche (AVAX) all recorded drops of up to 8%.
• Other Laggards: Projects like HYPE, SUI, Stellar (XLM), Litecoin (LTC), Hedera (HBAR), and Toncoin (TON) were also caught in the widespread downturn.

What’s Next for the Crypto Market?

With over $150 billion erased in a day, the market is on shaky ground. Traders and investors are now closely watching key support levels for both Bitcoin and major altcoins. A failure to hold these levels could invite further downside, while a strong bounce could signal that this was a temporary shakeout. For now, volatility remains the only certainty as the market digests this sharp and painful correction.