Key Moments
- Bitcoin traded 0.2% lower at $80,185.6 by 03:05 ET (08:05 GMT), near a one-month low after last week’s steep drop.
- More than $1 billion in leveraged crypto positions were liquidated recently, with long Bitcoin bets taking most of the losses.
- Traders are now focused on the Fed’s upcoming policy decision and the expected announcement of the next Fed chair nominee.
Bitcoin Stays Under Pressure Near One-Month Low
Bitcoin hovered near its lowest level in about a month on Monday. The move followed last week’s sharp decline. Traders stayed cautious ahead of the Federal Reserve meeting and after major liquidations in leveraged crypto positions.
The largest cryptocurrency was last down 0.2% at $80,185.6 by 03:05 ET (08:05 GMT).
Over the past week, Bitcoin fell more than 6%. The pullback came as global markets turned risk-off. In addition, uncertainty around monetary policy, FX volatility, and shifts in US Treasury yields pressured risk assets.
Derivatives Liquidations Deepen the Downturn
The selloff accelerated as leveraged positions in derivatives markets were unwound. Market data shows that more than $1 billion in leveraged crypto trades were liquidated during the recent turbulence. Long Bitcoin positions took the bulk of the losses.
These forced liquidations happen when margin requirements are breached. They often amplify declines because they add automatic selling pressure and reinforce negative momentum.
Sentiment Shifts After Earlier Rally
Earlier this year, Bitcoin rallied on expectations of looser US monetary policy and steady inflows into spot ETFs. However, that optimism has faded. Investors reassessed the rate outlook and reduced exposure to riskier assets after sharp moves in currency and bond markets.
All Eyes on the Federal Reserve
Attention now turns to the Fed’s two-day policy meeting, ending Wednesday. Most traders expect rates to stay unchanged. Still, they will watch Chair Jerome Powell for hints on the timing and size of future rate cuts.
Investors also want clarity on liquidity and the Fed’s balance sheet. These factors can influence crypto markets significantly.
Uncertainty Over Next Fed Chair Nominee
Adding to the cautious mood, traders await President Trump’s expected choice for the next Fed chair. The nominee could shape the future path of monetary policy, especially if they lean more dovish or align closely with the administration’s goals.
Altcoins and Meme Tokens Extend Losses
Broader crypto markets also weakened on Monday. Most major altcoins declined alongside Bitcoin as risk sentiment turned negative.
| Cryptocurrency | Move | Price / Change |
|---|---|---|
| Bitcoin | Last trade | $80,185.6 (down 0.2%) |
| Ethereum | Price | $2,897.92 (down 1.5%) |
| XRP | Price | $1.88 (down 0.8%) |
| Solana | Change | down 3% |
| Cardano | Change | down 1.5% |
| Polygon | Change | down 1.5% |
| Dogecoin | Change | down 0.8% |
| $TRUMP | Change | down 1% |
Ethereum fell 1.5% to $2,897.92, while XRP slipped 0.8% to $1.88. Solana dropped 3%, and Cardano and Polygon each declined 1.5%.
Among meme tokens, Dogecoin edged down 0.8%, and $TRUMP lost 1%.
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