Bitcoin dips under $93,000 as $680 million worth of leveraged longs face liquidation.

Bitcoin started the week on the back foot in Asian trading, dropping about 3% to roughly $92,500 as momentum from a derivatives-led rally faded.

The decline underscores how fragile the market remains, even as signs emerge that the intense selling pressure seen late in 2025 is beginning to abate. Bitcoin has pulled back from a recent move toward the mid-$90,000 range, with liquidation data suggesting bullish positioning had become stretched. CoinGlass data showed more than $680 million in crypto positions were wiped out over the past 24 hours, nearly $600 million of which came from long bets.

Altcoins were hit harder during Monday’s Asia session. Solana slid 6.7%, Sui plunged 10%, and Zcash fell 10%. Beyond crypto, gold extended its rally, climbing 1.7% to $4,600 after the U.S. imposed a new 10% tariff on Denmark and seven other European countries, set to remain in place until “a deal is reached for the complete and total purchase of Greenland.”

Glassnode said in its weekly report that bitcoin’s advance toward $96,000 was driven largely by “mechanical” derivatives flows, including short liquidations, rather than sustained spot buying. The analytics firm cautioned that futures market liquidity remains thin, leaving prices vulnerable to sharp pullbacks once forced buying dissipates.

The firm also highlighted a dense supply zone formed by long-term holders who accumulated near previous cycle highs, a level that has repeatedly capped recent rebounds.

CryptoQuant offered a more guarded assessment, characterizing the move since late November as a potential bear market rally rather than the start of a new uptrend. Bitcoin continues to trade below its 365-day moving average near $101,000, which CryptoQuant described as a key “regime boundary.” While demand has improved marginally, the firm said broader conditions remain weak, with apparent spot demand still contracting and U.S. spot ETF inflows staying modest.

There are, however, early signs of stabilization. Glassnode noted that long-term holder distribution has slowed significantly compared with late 2025, while spot flows on major exchanges such as Binance have tilted more toward buyers. Selling pressure linked to Coinbase has also eased.

Options markets continue to signal caution. Implied volatility remains subdued, but downside protection is still priced into longer-dated contracts, indicating persistent investor hedging.

Until sustained spot demand re-emerges, analysts warn bitcoin will likely remain sensitive to shifts in leverage and liquidity, leaving markets vulnerable to further volatility.