Bitcoin News Today: Bitcoin Dips Below $87K, Triggering $200M in Leveraged Liquidations

Bitcoin fell below $87,000 on Monday, triggering a wave of liquidations that wiped out roughly $200 million in leveraged long positions within a single hour according to market analysis. The sudden drop sent ripples through the cryptocurrency market, with BTC trading just above its weekly low and facing renewed bearish pressure amid thin liquidity conditions.

Traders and analysts are now watching closely for signs of stabilization or further declines.

The price decline came as U.S. equity markets reopened for the week, adding to a challenging environment for digital assets. Binance and Wintermute were identified as notable sources of sell pressure during the selloff, with market observers noting aggressive liquidations compounding downside momentum as reported. The move has raised concerns over the fragility of leveraged positions and the broader market's ability to withstand continued volatility.

Bitcoin's market capitalization has dipped below $1.73 trillion, with the price currently trading at around $86,751 - a 2% drop in 24 hours. Analysts are pointing to key support levels, including the $88,000 and $86,000 ranges, as critical indicators of whether the downward trend will continue or reverse.

Why the Slide Intensified

The sell-off was amplified by weak liquidity and thin trading volumes, particularly during the typically quiet Sunday session. A decisive drop below the $90,000 level - a psychological threshold for many traders - triggered cascading liquidations and further downward pressure. The move came as investors braced for a busy week of U.S. economic data and central bank events, with many positioning for potential volatility in traditional markets as well.

Additionally, leveraged traders who had maintained bullish positions were caught off guard by the rapid price move. Liquidation data from platforms like Coinglass showed that nearly $200 million in long positions were wiped out within an hour. This rapid unwinding of leveraged bets contributed to a sharp and orderly but intense decline in BTC prices.

How Markets Reacted

Ethereum and other major altcoins also saw significant declines, with Ethereum briefly dipping below $3,000 before recovering modestly to around $3,122. Solana, BNB, and other top tokens followed similar trajectories, with layer-2 and DeFi tokens experiencing some of the sharpest losses. The broader market's risk-off sentiment has led to a flight to lower-risk assets, with some investors moving into gold and traditional safe-havens.

Meanwhile, institutional interest in crypto has remained strong, with spot ETFs continuing to attract inflows despite the short-term turbulence. Bitcoin ETFs alone added $287 million in net inflows over the past week, indicating ongoing demand for regulated crypto investment vehicles. However, this hasn't been enough to counterbalance the near-term selling pressure.

What Analysts Are Watching

Analysts are focusing on whether Bitcoin can stabilize around key support levels or face deeper losses. A sustained move back above $90,000–$91,000 would be needed to restore bullish sentiment and halt the current bearish momentum according to market analysis. On the other hand, a failure to defend the $88,000 level could expose BTC to further declines toward the $86,000–$87,000 range.

On-chain analysts argue that the market is in the early stages of forming a long-term base, with futures data suggesting a reversal in the premium paid by longs to shorts. However, they also caution that more downside testing is likely before large buyers regain control. Thin liquidity and order-book imbalances continue to create sharp, short-lived price swings, making the near-term outlook unpredictable.

Risks to the Outlook

The current market environment is characterized by fragile investor sentiment and a high degree of uncertainty ahead of year-end and into 2026. Institutional demand has remained a stabilizing force, but the risk of further leveraged liquidations looms as traders continue to hedge their positions. Thin trading volumes and liquidity pockets mean that even small moves can trigger significant price reactions.

Moreover, the broader macroeconomic environment remains a wildcard. With a dense calendar of U.S. economic data and central bank decisions ahead, traders are positioning cautiously, adding to the risk of further short-term volatility. The market is searching for a clear bottom, but for now, uncertainty reigns.

What This Means for Investors

For investors, the recent drop serves as a reminder of the inherent risks in leveraged trading and the importance of proper risk management. Short-term traders are advised to watch key support levels closely, while long-term holders remain relatively unconcerned with day-to-day fluctuations.

Institutional investors, on the other hand, have continued to accumulate Bitcoin through regulated vehicles, suggesting continued confidence in the asset class despite the near-term turbulence. The recent purchase by Strategy, the world's largest publicly traded BTC holder, added $1 billion in Bitcoin at an average price of $92,098, signaling continued demand despite the selloff.

As the market enters the final stretch of the year, all eyes remain on whether Bitcoin can stabilize and begin a meaningful recovery - or if the bearish trend will continue into the new year.