There was a sharp sell-off over the weekend, as a result of which prices dropped to about $75,000.
This was facilitated by large-scale liquidation of leverage positions and growing macroeconomic uncertainty, which put pressure on sentiment. The world's largest cryptocurrency last fell 2.3% to $77,133.4 by 04:25 Moscow time, dropping to $75,766.8 — levels last seen almost ten months ago.
Bitcoin fell slightly short of a 15-month low of about $70,000 amid continued selling pressure.
Bitcoin Plummeted over the Weekend amid Massive Liquidations
The recession has caused widespread damage in the digital asset market. According to CoinGecko, over the past 24 hours, the total capitalization of the crypto market has decreased by about $111 billion, which highlights the scale of the debacle.
According to Coinglass, about $1.6 billion in leverage positions were liquidated as falling prices forced traders to quickly wind down bullish bets.
Low liquidity, especially during the weekend, exacerbated the sell-off. As prices fell below key thresholds, stop-loss orders and margin calls accelerated the decline, creating a feedback loop that increased volatility on the main tokens.
Bitcoin's decline is also linked to broader risk aversion in global markets after renewed attention to U.S. monetary policy.
Trump's Appointment of Warsh to the Fed Puts Pressure on Cryptocurrency
US President Donald Trump has nominated Kevin Warsh as the next chairman of the Federal Reserve System, prompting a reassessment of the outlook for interest rates and liquidity conditions.
Warsh, a former governor of the Federal Reserve System, is widely known as a proponent of hawkish policies, especially regarding inflation control and balance sheet discipline.
His position may imply tougher financial conditions compared to expectations earlier this year, which reduces interest in speculative assets such as cryptocurrencies, which tend to benefit from abundant liquidity and lower borrowing costs.
"Warsh's past criticism of quantitative easing and the Fed's use of its balance sheet to strengthen monetary policy transmission triggered an immediate curtailment of transactions that benefited from concerns about currency depreciation, including bitcoin and other cryptocurrencies," said David Scutt, market analyst at StoneX Group.
Bitcoin has plummeted from the all-time highs reached last year, wiping out a significant portion of the gains that were driven by optimism about institutional adoption and softer financial conditions.
Cryptocurrency Today: Altcoins Continue to Decline; Ether at 7-Month Low
On Monday, most altcoins fell even further, building on the sharp losses suffered over the weekend.
The second largest cryptocurrency, Ethereum, fell 6.6% to $2,290.92, trading near the seven-month lows reached in the previous session.
The third largest cryptocurrency, XRP, fell 4.4% to $1.59.
Solana declined by another 3%, while Cardano and Polygon declined by 1.5% each.