Global crypto markets started the week with a sharp decline. The total market value fell by $140 billion in just a few hours, falling below the $3 trillion threshold. Bitcoin 
$86,517.44Losing the $90,000 support, it retreated to $85,200 and tried to hold on just below $86,000 in Asian transactions. The harsh sales combined with the effects of both regulatory uncertainties and excessive leverage in derivative markets turned into a chain wave of panic.
Derivative Pressure and Miner Stress Crash Prices
According to analysts, there are several layered reasons behind the decline. The first development that shook the market was China’s new restrictions on domestic Bitcoin mining. Analyst named “NoLimit” stated that some miners across the country have gone offline again. However, the area where the pressure was really concentrated was the increase in open positions in the derivative markets to record levels.
Analyst “Sykodelic” emphasized that the highest open position increase of the last six weeks was experienced in this decline. According to Deribit data, which has a $2 billion option open position at $85,000, investors taking short positions tried to balance the risk with forward and spot sales as the price fell. This increased the sales pressure. Chain liquidations increased the seller density in the market, causing Bitcoin to lose thousands of dollars in a few hours.
Glassnode analyst James Check commented, “Market stress is at the highest level since the 2022 bear market.” Falling hash rates of Bitcoin miners, 60 percent of inflows in ETFs being at a loss, and many funds trading below their net asset value further deepened the weakening confidence.
Delay of Crypto Law in the US Increases Uncertainty
Another important reason for the collapse in the markets was the postponement of the bill that would regulate crypto markets in the USA. The Senate Banking Committee announced that the bill regulating the crypto market structure and giving the CFTC authority over spot markets will not be brought to the agenda until the beginning of 2026.
The crypto industry expected this bill to make progress by the end of the year. However, the statement “The Committee continues negotiations and plans to vote in early 2026” reinforced the perception among investors that regulatory uncertainty will continue. This delay reduced the risk appetite, especially of US-based ETF investors.
Global investors started to take defensive positions again as the market came under both political and technical pressure. Sharp sales in Bitcoin, Ethereum 
$2,946.63 and Solana also triggered double-digit declines in leading altcoins.
