Bitcoin experienced a significant decline of approximately 2% on Monday, falling to $76,400, marking its lowest point since late April. The world’s leading cryptocurrency continued its downward trajectory over the weekend amid rising bond yields that have exerted pressure on risk assets.
In the past 24 hours, Bitcoin faced heavy selling, leading to the liquidation of over $182 million in trading positions, based on data from CoinGlass. A substantial portion of these losses occurred among investors who had engaged in bullish, leveraged trading, betting on further price increases.
Compounding these challenges, Bitcoin Depot, once the largest cryptocurrency ATM operator in North America, filed for Chapter 11 bankruptcy. The company cited an “unsustainable” business model in the face of lawsuits and increasing regulatory scrutiny, with some states even banning the machines entirely.
Market sentiment has been shaky due to a confluence of factors, including rising bond yields and ongoing inflation concerns. Additionally, tensions in the Strait of Hormuz have kept oil prices high, contributing to the overall unease in the markets. Ivan Patriki, co-founder of market analysis platform QuantMap, noted, “With further escalation in the Middle East and the continued geopolitical premium in oil, a Bitcoin breakout below $76,000 becomes increasingly likely.” He emphasized that a cautious scenario appears to be the prevailing outlook, suggesting that Bitcoin’s recent correction follows a significant rally.
The current downturn follows a brief surge last week when Bitcoin had managed to surpass $81,000, buoyed by the progress of a major cryptocurrency bill in Congress.
