The crypto market remained under intense pressure on Monday as rising political tensions, rising oil prices, sticky US inflation data, and a wave of more fiscal deficits dampened investor sentiment in digital assets.
Summary
- The total crypto market capitalization fell 3.8% to $2.56 trillion as Bitcoin fell below $77,000 amid increasing macroeconomic and geopolitical pressure.
- Over $661 million in crypto positions were liquidated in the last 24 hours, with nearly 95% of the liquidation coming from long bullish trades.
- WTI crude rose above $107 while US spot Bitcoin ETFs recorded more than $1 billion in weekly outflows as stalled US-Iran talks and sticky inflation weakened appetite.
The total cryptocurrency market capitalization has fallen by about 3.8% in the past 24 hours to about $2.56 trillion, while Bitcoin (BTC) has fallen more than 4% to fall below the key support level of 77,000 and hit a multi-week low before recovering slightly at press time.
Ethereum (ETH) fell nearly 6% in the $2,100 region, while major altcoins, including Solana (SOL), XRP (XRP), BNB (BNB), Dogecoin (DOGE), and Hyperliquid (HYPE), posted losses between 5% and 12%.
According to CoinGlass data, over 670 million worth of crypto positions were liquidated in the last 24 hours, with long bullish positions accounting for nearly 95% of the wipeout.
The latest market decline accelerated after investors reacted to another round of hotter-than-expected US inflation data.
The latest Producer Price Index data rose 6% year-on-year following a stronger-than-expected Consumer Price Index reading of 3.8%, reinforcing fears that inflation remains stubbornly high across the US economy.
The strong inflation reading has significantly dampened expectations for a short-term Federal Reserve interest rate cut. Instead, traders have started pricing in the possibility that prices may remain high for a long time or may even rise further if inflationary pressures continue to build.
At the same time, the 10-year US yield rose from 4.5% to 4.6%, increasing the attractiveness of safe-haven assets compared to speculative investments such as cryptocurrencies.
Higher yields and tighter financial conditions often reduce liquidity in all financial markets, often leading investors to reduce exposure to high-risk assets, including Bitcoin and altcoins.
Oil prices extend gains as Iran talks reach impasse
Investor sentiment also declined as political tensions between the United States and Iran continued to escalate.
WTI crude futures rose above $107 per barrel on Monday, extending last week’s gains of more than 9%, while Brent crude traded in the $105–$113 range as US-Iran peace talks stalled and the continued closure of the Strait of Hormuz raised fears of a wider global supply disruption.
In a tweet on Truth Social on Sunday, President Donald Trump warned that “the clock is ticking” on Iran and urged Tehran to “move, FAST,” while Iranian media reports suggest that talks are still very different with the US giving “apparent consent.”
The rise in oil prices has raised concerns that energy-driven inflation could delay potential capital cuts at central banks and reduce interest in speculative assets such as cryptocurrencies.
The exit and liquidation of the Bitcoin ETF accelerates the selloff
Meanwhile, Bitcoin’s break below the major psychological support areas near $80,000 and $78,000 triggered automatic cancellations in all derivatives markets.
The sharp drop forced the exchange to close out large overstretched bullish positions, accelerating momentum as stop-loss orders continued to be placed in the broader market.
Institutional flows have also weakened significantly over the past week.
US spot Bitcoin ETFs recorded more than $1 billion in net outflows, ending a strong multi-week inflow streak that had been supported by bullish market momentum. Spot Ethereum ETFs have also expanded their recent list of exits, reflecting a decline in institutional demand across the broader crypto sector.
On-chain data also showed that Bitcoin miners sold about 800 BTC worth about $64 million to profit amid the deteriorating market conditions.
At the same time, investor sentiment faced additional pressure after Strategy led by Michael Saylor revealed the risks associated with the ability to sell Bitcoin to help manage convertible note obligations, which further adds to the near-term uncertainty surrounding business BTC demand.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.
