Surprise Crash in the Crypto Market: Bitcoin Falls Back to $112,000
Overall, the crypto market is down 3.8%. The steepest losses are concentrated in Dogecoin (down more than 8%), Solana and Cardano.
Quick overview
- Cryptocurrencies experienced a broad selloff, with Bitcoin down 2.4% and Ethereum down 7.1%.
- The overall crypto market declined by 3.8%, with significant losses in Dogecoin, Solana, and Cardano.
- More than $1.5 billion in bullish bets were liquidated on Monday, affecting over 407,000 traders.
- Despite a drop in the U.S. dollar index, Bitcoin failed to rebound, contrasting with gains in gold.
The move is unusual, as the U.S. dollar has not strengthened in global markets following the Federal Reserve’s recent rate cut.
Cryptocurrencies opened the week with a broad selloff. Bitcoin, the market’s bellwether, is down 2.4% over the past 24 hours, trading at $112,550 on Binance. Ethereum has fallen even more sharply, losing 7.1% to $4,161.
Bitcoin’s price has once again slipped toward the average entry level of short-term investors. The key “equilibrium” level for the market appears to be around $110,000. A break below this threshold could trigger forced liquidations among short-term holders exiting BTC, as well as a spike in demand for hedging.
Overall, the crypto market is down 3.8%. The steepest losses are concentrated in Dogecoin (down more than 8%), Solana and Cardano (each down about 7%), and XRP (off roughly 4%).
Why Are Cryptos Falling?
According to CoinGlass data, more than $1.5 billion in bullish bets were liquidated on Monday, fueling the sharp declines. In total, over 407,000 traders were wiped out within a 24-hour period—the highest level of liquidations seen in months.
The U.S. dollar index fell more than 0.2% today, yet this has not translated into a rebound in Bitcoin. Unlike gold—which rose over 1% to surpass $3,700 per ounce—Bitcoin failed to follow the safe-haven rally.
Despite the lack of a direct catalyst, the drop appears tied to growing demand for protection against further downside, which has outweighed bullish positioning, even amid a Fed rate cut and broad gains on Wall Street.
What’s Wall Street Watching?
U.S. equities opened lower on Monday but later reversed course. The Dow Jones Industrial Average rose 0.08%, the S&P 500 gained 0.30%, and the tech-heavy Nasdaq Composite advanced 0.59%.
The morning weakness was partly linked to one of President Donald Trump’s latest immigration policy announcements. On Friday, he said U.S. companies would be required to pay $100,000 for new worker visas—a potential blow to the country’s technology sector, one of the most dynamic segments of the economy.
Even so, the major Wall Street benchmarks continue to build on last week’s record-high closes, extending their upward trend into Monday’s session.
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