Bitcoin’s price unexpectedly dropped nearly 5% on Sunday, settling at $86,950. This drop triggered liquidations amounting to $539 million, marking it as the worst November for Bitcoin since 2018, as reported by CoinGlass. While Bitcoin had traded around $91,500 over the weekend, it suffered a rapid decline in just three hours, demonstrating market volatility.

The decline occurred after Bitcoin had closed a week at $90,411, which had seen its first upward trend after four weeks of losses. The Kobeissi Letter noted that significant price fluctuations often occur on weekends, particularly stating:

“As seen countless times this year, Friday night and Sunday night often come with large crypto moves.”

Latest Developments on Liquidations

Kobeissi addressed the recent flash crash, associating it with an increase in selling volume that led to a chain reaction of sell-offs exacerbated by extensive leverage positions being closed. Over the last 24 hours, more than 180,000 traders faced liquidations, predominantly on long positions in Bitcoin and Ether.

November’s Performance

This substantial drop highlighted Bitcoin’s struggles in November, with a reported decrease of 17.49%, the steepest since 2018. For context, during the November of that year, Bitcoin faced a harsher decline of 36.57%. Many analysts remain optimistic about future movements despite current challenges, with one remarking:

“This is actually a great start to the month.”

Overall, today’s drastic fluctuations reiterate the ongoing volatility in cryptocurrency markets.