Bitcoin Slide Triggers Heavier Altcoin Losses, but Traders Remain Steady

Bitcoin (BTC) faced a downturn, testing the $85,000 mark during Monday’s trading hours, which subsequently dragged down the rest of the cryptocurrency marketplace as investor confidence waned.

Although the decline was significant enough to adversely impact altcoins, analytics from social media and blockchain sources indicate that traders are adopting a wait-and-see approach, hinting that their confidence is still somewhat intact.

Market Experiences Widespread Reductions

As of the latest updates, Bitcoin had decreased approximately 3.6% over the past 24 hours and was fluctuating around $87,000, according to market data shared by Santiment. Ethereum (ETH) experienced a more drastic fall of over 6%, settling just above $2,900, which collectively saw the entire crypto market cap contract by about $140 billion in just a few hours.

Significant declines were also observed in various altcoins. An analysis by Santiment covering December 15–16 reflected a series of losses among notably larger and mid-cap coins, with ASTER recording a drop of about 12%, ENA by 9%, SUI by 8%, and HYPE by 7%, marking some of the largest losers of the day.

Data from Glassnode indicates that capital appears to be consolidating within Bitcoin, while many other segments of the crypto market have underperformed relative to Bitcoin over the past three months.

Yet, what was remarkable was the behavior exhibited in the market rather than just the pricing figures. Santiment reported a surge exceeding 40% in Bitcoin-related discussions within a single day, while Ethereum mentions saw an increase nearing 75%. Analysts suggested that rises in engagement of this nature often occur during market extremes, indicating that traders voice their opinions more during downturns.

However, additional blockchain indicators and social media sentiment have yet to display traditional signs of a market bottom, such as significant spikes in decentralized finance (DeFi) liquidations or overwhelming fear, suggesting that the downward trend may continue.

Tensions Rise, Yet Signals of Panic are Lacking

Market observers have put forth varied theories regarding the recent drop. A December 16 review noted that this decline could be linked to postponed U.S. regulations concerning the structure of the cryptocurrency market, in conjunction with significant derivative positions clustering around the $85,000 level.

Moreover, Peter Brandt, a seasoned trader, voiced concerns on December 15, warning that Bitcoin’s longevity chart structure bears resemblance to previous cycle peaks, although he emphasized that historical correlations do not equate to predictions.

Despite these views, the indications of forced selling remain low. On-chain data reveal unrealized losses increasing, but not sharply. ETF inflows and exchange reserves imply that investors are hesitant to sell, preferring to stay put for now. Even earlier aggressive purchasing of Bitcoin by certain strategies has not evoked broader stress in the overall market, according to Santiment’s assessments.

For the moment, market participants closely observe Bitcoin’s efforts to stabilize around $85,000. Until leverage dissipates or market sentiment shifts sharply downward, the current decline appears to signify rising pressure rather than a complete capitulation.