Bitcoin (CRYPTO:BTC) fell below $87,000 on Monday after sell orders intensified shortly after Wall Street opened, accelerating a sharp intraday decline.
Market data showed BTC dropping to around $86,625, extending a period of choppy and uneven trading seen over recent sessions.
The sell-off triggered more than $200 million in liquidations of leveraged Bitcoin long positions within roughly an hour.
Traders said the speed of the move caught late bullish positioning off guard and rapidly shifted short-term market sentiment.
Binance and market maker Wintermute were cited by participants as notable sources of selling pressure during the downturn.
Many traders said technical indicators offered little evidence of an immediate rebound following the liquidation cascade.
Short-term traders described the move as a continuation of a broader volatile structure rather than a confirmed trend reversal.
“My only issue now is selling volume isn’t very high so we will likely catch another bounce around 84k, even if I still believe we get to 76k in due time,” Roman said.
Liquidity-focused analysts framed the drop as part of a wider stop-hunting environment across derivatives markets.
“This is a massive liquidity hunt and I expect more bart moves all over,” Daan Crypto Trades said.
Some market participants retained a constructive medium-term outlook despite the near-term weakness.
“We finally broke the early December range and I still expect a test of 100K–105K once this structure resolves,” AlejandroBTC said.
Adding to market noise, Strategy disclosed the purchase of 10,645 BTC at an average price of $92,098 per coin.
The filing with the U.S. Securities and Exchange Commission reignited debate over whether such disclosures affect short-term volatility.
On-chain analysts said futures data suggests a base may be forming but warned further downside remains possible.
“A bottom is being ironed out, but another drop in price and funding rates is likely first,” On-Chain College said.
At the time of reporting, Bitcoin price was $86,377.46.