Bitcoin experienced a significant sell-off on Monday, with the world's largest cryptocurrency dropping 4.8% in a single day, closing at over $93,000, a total decline of more than $4,800, which is over 55% of last week's increase of $8,100.

Analysts believe this drop may be part of traders rebalancing their portfolios at year-end, particularly in December, which has historically performed strongly.

"We see two main factors leading to a temporary pullback in Bitcoin's price," said Ryan McMillin, Chief Investment Officer of crypto fund management firm Merkle Tree Capital, in an interview with Decrypt.

He mentioned that a "sell wall" formed as Bitcoin approached the "psychological threshold" of $100,000, with many traders trying to profit from the market surge three weeks after President Trump's election.

Additionally, McMillin noted the accumulation of leveraged long positions, which are highly attractive to market makers betting on price increases. In other words, market makers may intentionally drive prices down to trigger the liquidation of these leveraged longs.

Data shows that the total liquidations on Monday surged to $550 million, with 70% coming from long positions. This trend is similar to Sunday. However, McMillin stated that this is just part of normal market behavior.

"There is very little liquidity below $92,000, so this could be the bottom of this adjustment," he added. "We expect the market to test the $100,000 level again within this week."

Meanwhile, MicroStrategy announced its largest-ever Bitcoin purchase, worth $5.4 billion, bringing its total Bitcoin holdings to 386,700 BTC (worth approximately $37.6 billion).

Moreover, video sharing and cloud service provider Rumble also announced plans to allocate its $20 million cash reserve into Bitcoin. This move aligns with the trend of corporate Bitcoin adoption driven by companies like MicroStrategy.

Other major cryptocurrencies also did not escape unscathed, with CoinGecko data showing that Dogecoin (DOGE) had the largest decline, dropping about 9.5% to $0.38.

Experts believe this pullback is a normal fluctuation within a bull market. "In a bull market, similar pullbacks are not uncommon," said Nick Forster, founder of decentralized derivatives protocol Derive. "The interest rate reduction cycle and the improvement in the regulatory environment are providing strong support for Bitcoin."