Crypto crash: Bitcoin tanks 6% in ‘sunday slam’; $400 million longs wiped out in an hour

Bitcoin crash: Crypto market saw a sudden selling pressure during the early Asian hours on Monday as the largest and oldest crypto token Bitcoin (BTC) crumbled over $5,200 or nearly 7 per cent in a short span of two hours. This squeeze has triggered $400 million worth of leveraged longs that have been liquidated over the last 60 minutes, as per the data.

According to the experts Bitcoin plunged in 'Sunday slam' as liquidations surge “As seen countless times this year, Friday night and Sunday night often come with large crypto moves,” observed the Kobeissi Letter, adding the slump came without an obvious news catalyst. Bitcoin saw Novembers as its worst month of this year and its worst November since 2018, falling 18 per cent.

Bitcoin’s Sunday slam' erased nearly 6% in hours and this triggered over $479 million in long liquidations to cause an abrupt reversal after a brief recovery. The move had no single catalyst but exposed how fragile sentiment remains after Bitcoin’s November loss, said Vikram Subburaj, CEO, Giottus.

"The dip can be attributed to a cascade of leveraged unwinds during thin weekend liquidity, rather than a fundamental shift in demand. Structurally, this remains a deleveraging phase: funding rates remain stretched, ETF flows show institutional caution, and retail positioning is still chasing rebounds," he said.

According to the data from Coinmarketcap, Bitcoin crashed sharply to intra-day low at $85,945 as of 9.50 IST on Monday, December 1, falling 6.55 per cent from its day's high at $91,965.04 in the last 24 hours. Bitcoin is down 32 per cent from its all time highs at $126,198.07, hit on October 07, 2025. Bitcoin's trading volume surged 46 per cent to $55 billion in last 24 hours, while its mcap dropped to $1.7 trillion.

A few experts believe that the crypto market is looking cautiously as Jerome Powell's commentary later today. Bitcoin has pulled back as traders turn cautious ahead of Powell remarks, which could shape expectations for the upcoming FOMC meeting, said Akshat Siddhant, Lead Quant Analyst at Mudrex.

"Bitcoin ETFs have posted their first week of net inflows since October, signalling a potential revival in institutional demand. Strengthening liquidity and improving market depth also support a constructive outlook. If sentiment stabilises, BTC could attempt its next leg higher. For now, $85,000 serves as key support, while $92,400 remains the immediate resistance," Siddhant adds.

The ripple effect of Bitcoin carnage was seen in other tokens as well. Among the top-10 crypto tokens, Ethereum, Ripple, BNB, Solana and Dogecoin cracked 5-8 per cent each. Zcash was the biggest laggard, crashing 22 per cent in the 24 hours. Ethana, Dash, Kucoin, Injective, Starknet, Pudgy, Aave tanked 12-15 per cent in the reported period.

The total market capitalization of the crypto market dropped more than 5 per cent to $2.93 trillion, while total crypto market volume jumped more than 40.5 per cent as tokens worth $116.65 billion exchanges hands. Bitcoins dominance in the crypto market remained at 58.6 per cent, while the Fear and Greed index remained at 20-level, highlighting fear sentiments.

The recent dip stems largely from leveraged unwinds in thin weekend liquidity rather than weakening demand. Conditions reflect a broader deleveraging cycle, with stretched funding rates, cautious ETF flows and retail traders chasing rebounds, said Sathvik Vishwanath, Co-founder and CEO at Unocoin. "Investors are also bracing for Jerome Powell’s remarks, ahead of the FOMC meeting."

This week will deliver an important read on the strength of the US economy, offering fresh clues for policymakers debating how aggressively to move on interest rates through 2026. US President Donald Trump said that he has chosen a nominee for the next Federal Reserve chair, adding to the focus on monetary policy.