Bitcoin hovered near its lowest level in a month on Monday, extending last week’s sharp decline as investors remained cautious ahead of a key Federal Reserve policy meeting. A combination of forced liquidations across leveraged crypto markets and heightened uncertainty over global monetary policy has continued to pressure digital assets.
The world’s largest cryptocurrency has struggled to regain momentum after a broad risk-off move swept through global financial markets, dampening appetite for volatile assets such as cryptocurrencies.
Bitcoin was last seen trading down around 0.2% at $80,185 in early U.S. trading, only slightly above its lowest level in nearly four weeks. The modest move masked deeper weakness, as the cryptocurrency has fallen more than 6% over the past week, marking one of its steepest weekly declines this year.
The sell-off reflects a broader pullback from risk assets as investors reassess interest rate expectations and brace for ongoing volatility across currencies, bonds, and equities.
Investor sentiment has turned increasingly defensive amid growing uncertainty surrounding global monetary policy. Sharp swings in U.S. Treasury yields and foreign exchange markets have driven capital toward safer assets, reducing demand for higher-risk investments such as cryptocurrencies.
As bond yields fluctuate and financial conditions tighten, Bitcoin and other digital assets have found it difficult to attract fresh inflows, despite strong long-term narratives.
Last week’s decline in Bitcoin was intensified by a wave of forced liquidations in crypto derivatives markets, where highly leveraged positions were rapidly unwound as prices fell.
Market data shows that more than $1 billion worth of leveraged crypto positions were liquidated, with Bitcoin long positions accounting for the majority of losses. Such liquidation cascades tend to accelerate price declines, as automated margin calls trigger additional selling pressure.
This technical dynamic often creates short-term overshooting on the downside, even when broader fundamentals remain intact.
Investor focus is now firmly on the Federal Reserve’s two-day policy meeting, set to conclude midweek. While the central bank is widely expected to keep interest rates unchanged, traders will closely analyze comments from Fed Chair Jerome Powell for guidance on future monetary policy.
Key areas of interest include:
The potential timing of interest rate cuts
The pace and magnitude of any future easing
The Fed’s assessment of inflation persistence and economic resilience
Any shift in tone could have significant implications for Bitcoin and broader financial markets.
Beyond interest rates, cryptocurrency investors are paying close attention to signals regarding liquidity conditions and the Federal Reserve’s balance sheet. Historically, periods of expanding liquidity and accommodative monetary policy have coincided with strong rallies in Bitcoin and other digital assets.
Conversely, a prolonged period of tight financial conditions could continue to limit upside potential in the crypto market.
Adding to market unease, traders are also awaiting a potential announcement from U.S. President Donald Trump regarding his nominee for the next Federal Reserve Chair.
The choice of future Fed leadership is widely viewed as influential for long-term monetary policy direction. A nominee perceived as more dovish or aligned with the administration’s economic agenda could lift market sentiment, while a more hawkish outlook may reinforce caution among investors.
Bitcoin’s weakness has spilled over into the broader digital asset market, with most major altcoins also trading lower on Monday.
Ethereum (ETH), the second-largest cryptocurrency, fell around 1.5% to $2,897
XRP slipped 0.8% to $1.88
Solana declined nearly 3%
Cardano and Polygon each lost about 1.5%
Among meme tokens, Dogecoin edged down 0.8%, while $TRUMP also slipped by roughly 1%.
The widespread decline highlights shrinking risk appetite and reduced speculative activity across the crypto market.
Despite the recent pullback, many analysts argue that Bitcoin’s longer-term outlook remains intact, supported by several structural factors:
Expectations of eventual monetary easing in the U.S.
Continued inflows into spot Bitcoin ETFs
Bitcoin’s evolving role as a portfolio diversification asset
However, in the near term, price action is likely to remain volatile as markets await clearer guidance from the Federal Reserve and assess broader macroeconomic risks.
Bitcoin’s slide toward a one-month low underscores the fragile sentiment currently gripping global markets. Heavy crypto liquidations, lingering uncertainty over Federal Reserve policy, and broader risk-off dynamics have combined to weigh on digital assets.
Until clearer signals emerge from policymakers, investors are likely to remain cautious, keeping a close eye on macroeconomic developments that could shape the next major move in the cryptocurrency market.
.png){kind=logo}
Tiếng Việt
English
