Monday was brutal for crypto investors. Bitcoin (BTC) slipped below $85,000 as market sentiment soured on growing chatter about a potential rate hike in Japan. And when Bitcoin sneezes, the rest of the crypto market catches a cold.

Here's where things stood by Monday's close:

The Liquidation Bloodbath

The real story is what happened to leveraged traders. According to Coinglass data, 266,362 traders got liquidated in the past 24 hours, wiping out $961.73 million in positions. That's not a typo. Nearly a billion dollars, gone.

The carnage wasn't limited to Bitcoin either. Among the hardest hit altcoins were Zcash, SPX6900, and Celestia, which topped the loser board.

What the Smart Money Is Saying

Crypto Seth pointed to the core dynamic at play: roughly $861 million in long liquidations alone, erasing positions from more than 261,000 traders. He called it a textbook liquidity hunt, where the market flushes out excess leverage before potentially resetting for the next move.

But here's the interesting part. Even as Bitcoin briefly touched $84,200, whale investors weren't running for the exits. Large holders actually stepped in and added about 71,500 BTC to their long positions, representing roughly $6 billion in buying power. That's a clear signal that big money sees value at these levels.

Altcoin Sherpa is watching the $75,000–$85,000 range closely. He thinks Bitcoin will likely bottom somewhere in that zone, the same high-volume area that provided support during the February through April correction. He views it as a solid entry point for long-term accumulation, though he cautions that bottoming processes take time.

Daan Crypto Trades observed that Bitcoin is getting rejected from a key former support level that's now acting as resistance. The recent 15% relief rally is already losing steam, he noted. But he's not reading too much into it yet. Early monthly price action is notoriously unreliable and prone to sharp fakeouts that trap traders on both sides.

Nebraskangooner expects Bitcoin to stay choppy and directionless in the near term. With bulls and bears both trying to position for the next major trend, he warns that few traders will successfully navigate the volatility before the market finally picks a direction.

Recent Developments Shaping Sentiment

Several major stories have been moving through crypto circles lately. Analysts are drawing comparisons to Bitcoin's 2019 action after it lost the $90,000 level. Arthur Hayes raised questions about Tether's solvency, asking Grok to compare the stablecoin issuer with traditional banks. Peter Schiff continued his skepticism, calling Michael Saylor's Bitcoin strategy a "fraud" and saying MicroStrategy is "broken."

On the institutional front, Czech National Bank bought Bitcoin as part of what officials described as "touching reality," with CNB's Michl noting the asset could go very high or to zero. Jim Cramer commented on Bitcoin's "horrible" start to December as it dropped $4,000 in minutes. Meanwhile, Grayscale announced plans to launch the first US spot Chainlink ETF this week, and Strategy revealed a $1.44 billion USD reserve to power its Bitcoin "reactor."

The bottom line? Crypto markets are in price discovery mode right now, with massive leverage getting flushed out while patient capital accumulates. Whether this is the bottom or just another pit stop on the way down remains to be seen.