Bitcoin (BTC) retraced from a recent peak of $98,500, dipping to $95,500 late on Sunday before bouncing back. This pullback, attributed to profit-taking as Bitcoin neared the psychological $100K level, set off a decline across the broader cryptocurrency market.

Leading the losses were XRP and Dogecoin (DOGE), both of which fell by more than 5%. Other major tokens such as Solana (SOL), Ethereum (ETH), Cardano (ADA), and Binance Coin (BNB) experienced drops ranging from 2% to 5%. The CoinDesk 20 Index dropped 1.48%, while the total market capitalization fell by 2.4%. However, the market showed signs of recovery by early Monday trading in Asia, with the losses narrowing to under 2% for most major coins.

In the wake of this volatility, more than $500 million worth of crypto futures positions were liquidated, including $366 million in long positions and $127 million in short positions, according to data from Coinglass. Unusually, small altcoins and mid-cap tokens saw liquidations exceeding $100 million, indicating that traders were taking on higher risks.

Despite the pullback, market participants remain confident. Jeff Mei, the COO of crypto exchange BTSE, stated, “Bitcoin has been leading the market, driven by institutional demand through ETFs. Hitting the $100K mark soon is very likely.” He also highlighted that interest in Ethereum ETFs would likely rise, with the Solana ETF expected to gain approval soon. Mei pointed out that the broader rally is likely to continue, especially given the positive momentum in equity markets and ongoing discussions about pro-crypto policies in Washington.