Bitcoin has tumbled to around $76,000–$77,000, approaching its lowest level in nearly ten months, as a wave of leveraged liquidations and growing macroeconomic uncertainty shook investor confidence. The world’s largest cryptocurrency briefly touched $74,600, a level not seen since April 2025, highlighting the intensity of the current sell-off.
The downturn erased tens of billions of dollars from the overall digital-asset market and dragged most major altcoins sharply lower. Traders are now closely watching key support levels while reassessing the impact of potential changes in U.S. monetary policy.
During Monday trading, Bitcoin lost between 2% and 6%, extending losses from a brutal weekend session. After failing to hold above $80,000, BTC slid rapidly through several technical support zones, triggering automatic stop-loss orders and margin calls.
Compared with the start of the year, Bitcoin has now shed around 10–13% of its value. The decline marks one of the steepest corrections since the post-rally pullback of 2022 and underscores how vulnerable the market remains to shifts in liquidity and investor sentiment.
Analysts note that trading volumes were relatively thin over the weekend, which amplified price swings. With fewer buyers available to absorb selling pressure, even moderate outflows quickly pushed prices lower.
A major driver behind the plunge has been the unwinding of leveraged positions across derivatives exchanges. Data from market trackers show that approximately $1.6 billion to $2.4 billion worth of long positions were liquidated within 24 hours.
When prices fell through key thresholds, exchanges automatically closed leveraged bets, forcing traders to sell Bitcoin and other tokens at market prices. This created a self-reinforcing spiral: falling prices triggered liquidations, and liquidations pushed prices even lower.
The episode highlights the growing role of leverage in the crypto ecosystem. While margin trading can magnify gains during bull markets, it often accelerates declines when sentiment turns negative.
Beyond technical factors, the broader macroeconomic environment has played a decisive role. Markets were unsettled by news that U.S. President Donald Trump nominated Kevin Warsh as the next Chair of the Federal Reserve.
Warsh is widely regarded as a hawkish policymaker, known for his emphasis on inflation control and balance-sheet discipline. His potential leadership has prompted investors to reassess expectations for interest rates and liquidity conditions in 2026.
Tighter monetary policy would likely reduce appetite for speculative assets such as cryptocurrencies, which thrived during years of cheap money and quantitative easing. The prospect of higher borrowing costs has therefore weighed heavily on Bitcoin and risk assets globally.
Market strategist David Scutt commented that Warsh’s historical criticism of aggressive Fed easing “triggered an immediate unwinding of trades that had benefited from fears of currency debasement, including bitcoin and other crypto tokens.”
The pain has not been limited to Bitcoin. Most major altcoins posted even steeper losses:
Ethereum (ETH) fell around 6–17%, trading near its seven-month low at roughly $2,290.
XRP dropped about 4–5%, slipping to $1.59.
Solana, Cardano, and Polygon each declined between 1.5% and 3%.
Meme tokens such as Dogecoin and $TRUMP also edged lower.
The broad-based decline shows that the sell-off is systemic rather than token-specific. Investors are reducing exposure to the entire digital-asset class as risk tolerance fades.
According to market aggregators, more than $100 billion in total crypto market capitalization vanished in a single day. The sharp contraction illustrates how quickly sentiment can shift in an asset class still dominated by retail participation and speculative flows.
Exchange liquidity has also deteriorated, with order books thinning on several major platforms. This raises the risk of further volatility if large holders decide to exit positions simultaneously.
Institutional investors, who helped fuel last year’s rally, have turned cautious as well. Many funds are waiting for clearer signals from the Federal Reserve before re-entering the market.
Bitcoin has long been promoted as “digital gold”—a hedge against inflation and monetary debasement. Yet the latest sell-off suggests that BTC continues to behave more like a high-beta risk asset than a safe haven.
While traditional havens such as gold and silver attracted inflows during the same period, cryptocurrencies moved in the opposite direction, mirroring declines in global equity markets.
This correlation raises questions about Bitcoin’s role in diversified portfolios and whether it can truly decouple from macro liquidity cycles.
Technical analysts are now focused on the $74,000 support zone. A decisive break below this level could open the door to a deeper slide toward the $70,000 region, last tested more than a year ago.
Conversely, a recovery above $80,000 would be needed to restore bullish momentum. Traders are also monitoring upcoming U.S. economic data and any comments from Federal Reserve officials for clues about future policy direction.
Some long-term observers remain optimistic, arguing that institutional adoption and the limited supply of Bitcoin could eventually stabilize prices. However, most agree that the market is likely to remain volatile in the near term.
Experts advise caution for retail traders, particularly those using leverage. The recent crash demonstrated how quickly positions can be wiped out when volatility spikes.
Diversification, disciplined risk management, and a focus on long-term fundamentals are seen as essential strategies. Investors should also pay close attention to macro developments, which are currently the dominant driver of crypto prices.
Bitcoin’s fall to around $77,000 marks one of the most severe corrections in recent months, driven by massive liquidations and renewed uncertainty over U.S. monetary policy. The sell-off spilled across the entire crypto market, pushing Ethereum and other altcoins to multi-month lows.
Whether this represents a temporary shake-out or the start of a deeper bear phase will depend largely on Federal Reserve signals and global risk sentiment. For now, caution rules the market, and volatility is likely to remain the defining feature of digital assets in the weeks ahead.
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