Bitcoin witnessed a sharp sell-off on Monday, with the asset’s single-day performance giving up more than half of the gains made last week.

The world’s largest crypto fell 4.8% on the day to just above $93,000, with Monday’s drop totaling more than $4,800. For context, that’s more than 55% of last week’s $8,100 runup.

Still, analysts say the move is likely part of traders rebalancing their positions as they look to the end of the year, particularly in late December, which has proven to be a favorable month in the past.

“We see a combination of two catalysts pushing Bitcoin’s price down temporarily,” Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, told Decrypt.

He pointed to a “sell wall” just below the “psychological barrier” right around $100,000, where traders are looking to capitalize on an explosive run following President-elect Donald Trump’s victory three weeks ago.

McMillin also pointed to a build-up of leveraged longs, or those betting on higher prices, as “too tempting” for market makers not to chase.

In other words, market makers who facilitate l

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Author: Sebastian Sinclair