Bitcoin fell to roughly $113,000 on Monday, extending a weekend pullback that knocked the largest cryptocurrency off recent highs and dragged the broader market lower.
Intraday prints hovered near 112,900 dollars as selling accelerated across majors. Ether slipped near 4,200 dollars, while several large cap altcoins posted steeper losses.
Pressure built as overstretched bullish bets unraveled. Derivatives trackers showed more than 1.5 billion dollars of positions liquidated over the past day, with negative funding signaling a sharp swing in sentiment.
That flush coincided with bitcoin briefly testing support just below 112,500 dollars before stabilizing.
The retreat followed a volatile stretch after the Federal Reserve delivered a quarter point cut last week and released fresh economic projections.
The move initially supported risk assets, but crypto’s leverage heavy structure left the market vulnerable to abrupt reversals as traders recalibrated the path for growth, inflation, and policy into year end.
Leverage shakeout hits altcoins
Losses broadened beyond bitcoin. Ether fell as much as 6 to 7 percent from recent levels, while tokens including Solana, XRP, and Dogecoin saw intraday drops ranging from high single digits to low double digits as long positions were forced out.
Market commentators pointed to a build up in funding and a quick flip to risk reduction that often magnifies moves in smaller tokens.
Crypto-related equities were not spared; shares tied to trading and mining activity weakened alongside token prices during U.S. hours as the selloff bled into premarket and cash sessions.
That mirrored the pattern seen during prior deleveraging episodes this year, when volatility in digital assets spilled into listed proxies.
Technicians are watching whether bitcoin can hold the low 113,000 dollar neighborhood that has served as a pivot in recent sessions.
A decisive break could invite a deeper test of summer support zones, while a quick reclaim of the mid 114,000s would hint at a stabilization phase.
Either way, direction likely hinges on the next macro catalysts, including inflation prints and growth readings that feed into the Fed’s reaction function.
Investors with longer time horizons may view the setback as routine after a strong run into last month’s highs.
Even so, the mix of policy uncertainty, crowded positioning, and thinner liquidity into the Northern Hemisphere fall points to wider trading ranges.
Position sizing and discipline matter more when the market trades on headlines and funding swings rather than steady spot demand.
