Over 216,000 traders liquidated in 24 hours as warnings from Strategy CEO and S&P’s USDT downgrade rattle markets….
Bitcoin dropped as much as 6% on Monday, falling below $86,000 during early Asian trading as heavy selling pressure continued to weigh on the market.
The downturn swept through the wider crypto sector, with major altcoins such as Solana, Ethereum, and XRP losing roughly 8% over the same period.
Monday’s decline comes after a weeks-long selloff triggered in early October, when about $19 billion in leveraged positions were wiped out, just days after Bitcoin touched an all-time high of $126,251. Since then, sentiment has remained fragile.
Bitcoin lost 16.7% of its value in November, though it briefly staged a recovery last week to climb past $90,000 as selling pressure eased. In the past 24 hours alone, 216,942 traders were liquidated, with total liquidations reaching $638.83 million.
Market analysts say the biggest issues remain the lack of dip buyers and weak inflows into Bitcoin exchange-traded funds (ETFs). They warn these structural problems may persist through December, with a key support level seen at $80,000.
Investor confidence was further tested after Strategy CEO Phong Le suggested the company could sell some of its Bitcoin reserves if its Mnav, a ratio comparing enterprise value to Bitcoin holdings turned negative.
“We can sell Bitcoin, and we would sell Bitcoin if we needed to fund our dividend payments below 1x mNAV,” he said on a podcast Friday.
Strategy, which holds $56 billion in Bitcoin, currently has an mNAV of 1.19, according to its website. Investors spent Monday digesting the comments.
Additional jitters came after S&P Global Ratings downgraded USDT, the world’s largest stablecoin, to its lowest rating, warning that falling Bitcoin prices could leave the token undercollateralized.
ETF Inflows Remain Weak
One of the biggest drags on Bitcoin’s price action has been the continued lack of fresh capital entering spot ETFs.
For the week ending November 28, ETF net inflows were only $70 million, far below levels seen during the early wave of institutional entry.
Thanksgiving week saw inflows of $220 million into Bitcoin ETFs and $312 million into Ether ETFs, but analysts say these figures remain small compared to initial adoption peaks.
Corporate Bitcoin holders have also remained largely inactive. No major company has increased its reserve holdings in the last two weeks, though Strategy added to its stash on November 17.
Market watchers also noticed that 1,163 BTC were moved to new addresses linked to SpaceX on Thursday, sparking speculation of a possible sale, though no official clarification has been issued.
Derivatives Market Signals Caution
The futures and options markets continue to show signs of hesitancy.
Monthly Bitcoin futures are only 4% above spot prices, well below the typical 5–10% range seen in neutral conditions. With Bitcoin down 18% in the past 30 days, analysts say the muted basis reflects a lack of appetite for leveraged long positions.
Options activity points to the same trend:
On both Thursday and Friday, put contracts outnumbered calls, showing traders are still preparing for downside risks. The put-to-call premium ratio—after hitting an extreme 5x on November 21 has eased but remains above 1.3x, still firmly in bearish territory.
Bitcoin’s recent drop below the lower band of a developing bear flag pattern has added to concerns.
Regulatory and Macro Uncertainty Add Pressure
On Saturday, the People’s Bank of China warned about the risks associated with virtual assets, including stablecoins, and urged agencies to increase cooperation against illicit activity. The comments injected further uncertainty into an already shaky market.
Investors are also watching U.S. economic signals closely. Data expected this week may influence expectations about whether the Federal Reserve will continue cutting interest rates.
Adding to the mix, U.S. President Donald Trump announced Sunday that he has selected his nominee for the next Federal Reserve Chair, after previously stating he expected the new appointee to support interest-rate cuts.
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