Bitcoin tumbled to roughly $85,500 on Monday, sliding about 7% as risk appetite faded across Asia and more than $200 billion in crypto market value vanished. Ethereum dropped 10% to $2,730, while Dogecoin led losses among the top coins with a near 12% fall. The broad crypto market shed over 7% in a few hours.
The trigger: Asia turns cautious
Singapore-based trading desk QCP Capital flagged a string of negative signals out of Asia as the spark for the selloff. Japans central bank sounded more hawkish, pushing swap markets to price higher odds of a rate hike. Japans two-year yield touched 1%, implying a 76% chance of a Dec. 19 move.
At the same time, fresh data showed Chinas non-manufacturing activity shrank for the first time in nearly three years. Together, those updates raised doubts that global liquidity is loosening, even if U.S. conditions still look supportive for crypto.
Market impact in numbers
Bitcoin (BTC) traded around $85,512 at press time, down roughly 7% on the day. Ethereum (ETH) fell to $2,730, off 10%. All of the top 10 tokens by market value were lower, with DOGE the biggest decliner at nearly 12%.
Only one name in the Top 100 bucked the trend: RAIN gained almost 11%. On the downside, Zcash (ZEC) slid 20%, PUMP dropped 17%, and ASTER fell 15.7%.
Sentiment stuck in fear
Cryptos widely watched Fear & Greed Index stayed pinned in the fear zone, signaling investors remain defensive after weeks of shaky price action.
Leverage flush: nearly $1B wiped
According to Coinglass, about $954 million in leveraged bets were liquidated over 24 hours. Long positions made up $867 million of that, while shorts were roughly $84 million. BTC led with $385 million in liquidations, followed by ETH at $228 million and altcoins at $83 million.
Liquidations happen when traders borrow money to amplify gains (leverage) and their positions move against them. When prices fall fast, exchanges automatically close those positions, which can speed up the drop.
Support levels traders are watching
On-chain analytics firm Glassnode said on X that new buyer cost bases clustered in the low-$80,000s after the latest dip. That creates a dense zone on their heatmap where recent buyers may try to defend price, acting like support.
ETFs send a mixed signal
Despite Mondays slide, U.S.-listed spot crypto ETFs drew money last week. Spot Bitcoin ETFs took in $70 million in net inflows, lifting total net assets to $119.3 billion and marking the first positive week since late October, per SoSoValue. Spot Ethereum ETFs saw more than $312 million in inflows, with net assets now at $19.15 billion.
ETF demand is a gauge of mainstream interest because spot ETFs buy the underlying asset rather than tracking futures. Fresh inflows can help steady prices once macro shocks pass.
Macro backdrop: rates in focus
U.S. Treasury yields edged higher on the first day of December as traders increased their bets on a Federal Reserve rate cut this month, CNBC reported. In Japan, government bonds weakened after the Bank of Japan chief hinted at a possible December hike, with the two-year yield reaching its highest since 2008 at about 1.02%, per Bloomberg.
Higher short-term yields typically weigh on risk assets like crypto because they raise the cost of borrowing and make safer assets more attractive.
Why it matters
- Asias rate and growth signals can move global liquidity, which crypto prices are highly sensitive to.
- Nearly $1B in liquidations shows many traders were overleveraged; that can deepen drops but also clear the way for steadier rebounds.
- ETF inflows hint that longer-term buyers are still active, even as short-term momentum flips.
What to watch next
- Bank of Japans December decision and any guidance on future hikes.
- Updates on Chinas services and broader growth data.
- U.S. rate expectations and how Treasury yields react.
- Whether BTC holds the low-$80K support cluster highlighted by Glassnode.