Bitcoin experienced a significant price drop on Monday, falling from around $44,000 to just under $41,000 within an hour. This sudden decline came after a bullish week, during which the cryptocurrency's value increased by more than 11%. Despite the recent dip, the market's overall outlook remains optimistic as Bitcoin has since recovered some ground and is currently trading above $42,000.

The rapid price drop has had a significant impact on over-leveraged traders, with the total value of liquidated positions skyrocketing to over $400 million on a daily scale. In the past 12 hours alone, $360 million worth of positions have been liquidated, affecting 120,000 traders. The single largest liquidated position was worth over $8 million and occurred on the OKX exchange.

Altcoins, such as Ripple, Cardano, Polkadot, Chainlink, and Shiba Inu, have also experienced similar declines, with most dropping by over 6% in a day. However, Avalanche remains a notable exception, as it is currently in the green among larger-cap altcoins.