Monday Free-Fall Wipes Out Nearly $500M in Leveraged Positions

The crypto market opened the week under pressure, with Bitcoin (BTC) and major altcoins retreating as traders digested weekend flows and macro headlines. Selling accelerated during early Monday trading, a period historically tied to sharper moves as liquidity and institutional participation return. 

Bitcoin dropped to around $85,776, down 2.63% in 24 hours, according to TradingView. Daily trading volume for the largest cryptocurrency reached roughly $42.5 billion, reflecting elevated activity as prices broke below short-term support levels.

The decline in BTC price triggered fresh liquidations across derivatives markets, as leveraged positions were unwound during thin early-week liquidity. On Monday alone, BTC experienced a liquidation of $200 million, while the overall crypto market lost $519 million in a 12-hour liquidation, as per Coinglass data.

Despite the pullback, on-chain and behavioral indicators suggest the market may be entering a familiar zone where short-term fear collides with longer-term positioning.

Altcoins extend losses

Altcoins largely followed Bitcoin’s downtrend. Ethereum (ETH) fell about 4.2% to near $2,936, while XRP dropped 4.4% to around $1.89, and BNB declined close to 3.7%, trading near $845 at the time of publishing. 

Ethereum remains firmly entrenched as the second-largest crypto asset, with huge enterprise interest, but BNB has shown relative resilience during recent market slowdowns. Overall, the pullback pushed the total crypto market further below the $3 trillion mark, reinforcing the cautious tone that has dominated recent sessions.

Why Mondays amplify volatility

Monday is often among the most volatile days in crypto. Unlike traditional markets, digital assets trade 24/7, but professional traders and institutions tend to re-engage at the start of the business week. That creates a “catch-up” effect, where weekend news, positioning, and sentiment are suddenly repriced.

A Binance forum post from CryptoDenUA captured the mood well. The user warned that Mondays often bring fake breakouts, sharp dumps, and liquidity hunts as large players test levels. The advice was to reduce risk, study higher-timeframe candles, and wait for clearer direction later in the week.

Market reactions split between fear and long-term optimism

Sentiment on X reflected the divide. Trader Merlijn The Trader highlighted a proposed “Bitcoin for America Act,” arguing it could unlock massive long-term demand if Americans were allowed to pay federal taxes in BTC.

BREAKING:

THE U.S. JUST UNLOCKED THE BIGGEST BITCOIN DEMAND DRIVER IN HISTORY.

Congress just introduced the Bitcoin for America Act.

Americans will be able to pay federal taxes in Bitcoin
with zero capital gains tax
and every BTC going straight into a national strategic… pic.twitter.com/iFa78CsEWJ

— Merlijn The Trader (@MerlijnTrader) December 14, 2025

On the other end, Tom Crown pointed out that Bitcoin is now in its longest consecutive extreme fear streak on record. For some, that signals capitulation risk. For others, it’s a classic contrarian setup.

For now, the market sits between those two forces: short-term fear driven by volatility and liquidations, and longer-term narratives that continue to attract patient capital. As usual, Monday might shake things up, but the real trend often shows itself only once the market calms down.

Also Read: Strategy Buys $980 Million in Bitcoin, Now Holds Over 671K Bitcoin

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