Bitcoin has dropped by almost 8%, while Ethereum by 10%, amid intense selling and warnings from China regarding illegal activities with cryptocurrencies.

On Monday, Bitcoin and Ethereum experienced significant declines, with Bitcoin trading at approximately $84,305, down nearly 8%, while Ethereum fell by 10% to $2,732. Solana also lost about 10%, reaching approximately $124. Market pressure increased following a warning from the People's Bank of China regarding illegal activities related to cryptocurrencies, affecting the operations of crypto companies in Hong Kong. The recent declines are part of a broader trend of risk aversion, and Ben Emons from Fedwatch Advisors mentioned that investors remain nervous due to massive liquidations, estimating that approximately $400 million were liquidated on a crypto exchange. With a leverage of $787 billion in futures contracts, the market is vulnerable to new liquidations. Monday's correction follows strong sell-offs in October, and Bitcoin shows an increasing correlation with traditional stock indices. Retail continues to influence market volatility, and macroeconomic uncertainties are affecting investor sentiment.