A sudden cryptocurrency sell-off erased more than $150 billion from the market on Monday, deepening a prolonged global slump.
Bitcoin and major altcoins fell sharply, extending losses after a fragile rebound last week that underscored persistent market weakness.
Bitcoin dropped 4.3% to below $88,000 in early Asian trading, while Ether slipped nearly 6% to under $2,900.
Overall market capitalisation fell more than 5%, marking one of the steepest single-day declines since September.
ShareCafe described the downturn as abrupt and linked it to macro shocks and rising leveraged trading risks.
The slide followed strong market reaction to US Federal Reserve minutes signalling fewer 2026 rate cuts than expected, weakening hopes of a dovish shift.
New US Treasury stablecoin guidelines added pressure by tightening oversight of dollar-linked tokens used widely across the sector.
China’s renewed crackdown on offshore crypto trading, including directives targeting Hong Kong platforms, intensified selling during Asian hours.
Read More: Crypto Stocks Slide Amid Sharp Decline in Bitcoin
Asia accounts for nearly 40% of global Bitcoin trading volume, amplifying the slump. Cascading liquidations accelerated losses as Bitcoin fell below key support levels.
CoinGlass reported more than $450 million in liquidations by midday, mostly involving leveraged long positions.
Grayscale strategist Zach Pandl called the episode a liquidity trap driven by excessive leverage.
Glassnode data showed around 15,000 BTC moving into exchanges on December 1, indicating strong panic selling.
Ethereum’s decline hit decentralised finance platforms, reducing locked value across Uniswap and Aave.
Altcoins, including Solana, Cardano and Dogecoin, posted heavy losses, while brief USDT issuance pauses raised depegging concerns.
The Fear and Greed Index dropped from 52 to 25, signalling Extreme Fear. Retail exchanges reported withdrawal spikes, and BlackRock’s Bitcoin ETF recorded $120 million in outflows.
Emerging markets faced sharper pressure, with Pakistan’s PKR volatility magnifying Bitcoin’s decline in local trading.
