Bitcoin fell to new local lows after Wall Street opened on Monday, extending a selloff that began during Asian trading hours. BTC briefly touched levels near $85,600 and logged daily losses of more than 7%, according to data from Cointelegraph Markets Pro and TradingView.
The drop erased roughly $144 billion in total crypto market value and triggered more than $600 million in liquidations over 24 hours. QCP Capital described the decline as the result of “a string of bearish developments across Asia.” The firm pointed to Japan’s interest rate outlook, thin liquidity, and concerns about potential Bitcoin sales by Strategy’s treasury holdings.
In its update, QCP wrote: “The critical question now is whether BTC can defend prior lows as bearish sentiment builds. This will hinge on liquidity conditions and Strategy-related flows.”
Japan’s backdrop added pressure. Hawkish comments from Bank of Japan Governor Kazuo Ueda pushed two-year yields to 1% and increased odds of a December hike. Meanwhile, China’s non-manufacturing PMI contracted for the first time in almost three years, fueling concerns about demand across the region. QCP said the combination “sparked panic and forced liquidations of leveraged longs.”
The downturn also coincided with the official end of U.S. quantitative tightening, which normally supports risk assets. Despite that shift, BTC reacted mostly to the liquidity shock from Asia, with prices sliding as U.S. traders returned from the Thanksgiving break.
Investor Takeaway
BTC continues to react more to liquidity imbalances than macro narratives. Until flows stabilize, levels near $85K–$87K remain vulnerable to sudden swings.
How Are Traders Reading the Market Structure?
Market sentiment leaned negative as key levels came into play. The Coinbase Premium flipped negative after only three “green” sessions, signaling weaker U.S. spot demand. Trader Killa wrote: “Lets keep it simple. We need to hold above 85.2K. Lose that > structure remains in bearish territory. We need to reclaim the previous weekly open. (86.8K). Above 87K an we can retest the weekly open.”
Others were more patient. Michaël van de Poppe argued the market was shaping a bottoming process despite the volatility. “Whatever reason took down the markets again, the sentiment remains the same,” he wrote. He said BTC needs time to finalize a bottom and described levels below $90,000 as “a massive opportunity to be scooping cheap positions.”
BTC was last trading near $86,500, down about 4% in the past 24 hours. Ethereum hovered near $2,900, Solana traded around $130, and BNB stayed close to $825.
What Does Onchain Data Reveal About Whale and Retail Behavior?
Onchain data from Santiment and other providers shows a shift in wallet behavior during the selloff. Large-wallet and long-term cohorts have slowed their pace of accumulation in recent weeks. Smaller wallets — those holding less than 1 BTC — accelerated buying into each dip.
Timothy Misir, head of research at BRN, called the divergence a warning sign. “Whales have slowed buying while retail wallets are accumulating — a classic late-cycle pattern that increases short-term fragility,” he told The Block. “This morning’s washout is a liquidity and positioning event. The market hasn’t signaled a regime change; it has signaled stress.”
Misir added that short-term holders realized losses surged into the drop, suggesting an “emotional reset.” He noted that exchange balances and stablecoin inflows show both available buying power and potential sell-side liquidity waiting on the sidelines.
Investor Takeaway
Whale slowdown and retail dip-buying tend to precede unstable price zones. Until large-wallet flows return, any rebound faces fragility.
Are Broader Flows and Macro Conditions Helping or Hurting BTC?
While the selloff was driven by Asia, other parts of the market looked more supportive. U.S. QT ended, year-end rate-cut odds increased, and global crypto investment products recorded $1 billion in weekly inflows after a difficult November marked by $3.5 billion in outflows.
Even so, price has not tracked those tailwinds. QCP noted: “After a 15% rebound off the $81K lows, a pullback was due. But the question now is whether BTC can defend prior lows as sentiment turns more cautious.”
Traders now focus on a dense U.S. data slate — ISM PMIs, ADP, JOLTS and PCE. Misir said the results could decide whether the drop was “a capitulation or the beginning of a deeper phase.”
Meanwhile, gold has drawn safety flows and reached $4,261, competing directly with crypto for capital. Until BTC reclaims the low-$90,000s, traders expect volatile two-way action and choppy liquidity. The next sessions may determine whether Bitcoin ends the year recovering lost ground or sinking into a heavier downswing.