Bitcoin Sinks Under $86,000 After Its Worst Month This Year – Jim Cramer Blames Speculation For Market Pressure

Retail sentiment across the top 10 cryptocurrencies by market capitalization deteriorated over the past day.

• Bitcoin’s November decline of 17.49% marked its weakest monthly performance of the year and its poorest November since 2018.
• Analysts say a rush of selling volume and leverage-driven liquidations accelerated the drop.
• Jim Cramer said Bitcoin-linked speculation is weighing on broader market sentiment despite moves in Japan’s bond market.

Bitcoin (BTC) dropped below $86,000 in early-morning trade on Monday as more than $637 million was liquidated from the crypto market in the last 24 hours. 

Bitcoin’s price was trading at around $86,700 at the time of writing, recuperating from an intra-day low of $85,500, according to Coinbase. The apex cryptocurrency has fallen more than 5% in the last 24 hours. On Stocktwits, retail sentiment around BTC dipped to ‘bearish’ from ‘neutral’ territory over the last 24 hours amid ‘low’ levels of chatter. 

Cramer Says Bitcoin’s Dragging The Market Down

According to CNBC's Mad Money Host, Jim Cramer, Bitcoin’s price drop and increase in speculative trading are pulling the broader market down. In a post on X, he noted that while the jump in Japan’s 10-year yield is a meaningful move for currency-focused hedge funds, and can create some spillover effects, today’s pressure is mainly about Bitcoin.

Bitcoin’s Weakest Month This Year

The decline follows Bitcoin’s weakest month of the year. According to CoinGlass data, BTC fell 17.49% in November, its poorest November performance since 2018, when it fell 36.57% during a deep bear market.

10x research noted that crypto volumes have fallen to their lowest levels since July. In its report, the research firm said the overall crypto market cap stands at $3.1 trillion, up 4% from a week earlier, while the average weekly volume of $127 billion sits 32% below trend. 

It highlighted that Bitcoin’s weekly volume of $59.9 billion was 31% below average, and Ethereum’s $21.1 billion was 43% below average. 

Analysts Blame Leveraged Selling

The Kobeissi Letter said the weekend slump arrived without a clear news catalyst, noting that Friday and Sunday nights have repeatedly produced outsized crypto moves this year. The firm attributed the drop to a “sudden rush of selling volume” that triggered a domino-like liquidation cycle amid heavy leveraged positioning.

Analyst ‘Sykodelic’ remained constructive, calling the downturn “a great start to the month,” noting that downside liquidity had already been cleared, the CME gap was closed, and roughly $400 million in longs had been flushed out.

Out of the $637 million liquidations in the last 24 hours, $567 came from long positions. Only $69 million in short bets were wiped out, according to CoinGlass. 

Altcoins Extend Losses

Cardano (ADA) and Dogecoin (DOGE) led losses among the top 10 cryptocurrencies by market capitalization. Cardano’s price and Dogecoin’s price dropped more than 8% in the last 24 hours. Chatter around both altcoins remained at ‘low’ levels over the past day. Retail sentiment around Dogecoin fell to ‘extremely bearish’ from ‘bearish’ territory, while retail sentiment around Cardano dipped to ‘bearish’ from the ‘neutral’ zone.

Solana (SOL) and Ripple’s native token XRP (XRP) both fell around 7% in the last 24 hours. Binance Coin (BNB) slipped more than 6%, while Ethereum (ETH) dropped 5.7%.

Ethereum’s price dipped to around $2,800, with retail sentiment on Stocktwits taking a hit, down to ‘extremely bearish’ from ‘bearish’ territory over the past day, while chatter remained at ‘low’ levels.

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