Bitcoin hovered near one-month lows on Monday, extending the steep declines seen last week as investors stayed cautious ahead of the Federal Reserve policy meeting and following a wave of heavy liquidations across leveraged crypto markets.
The world’s largest cryptocurrency was last down around 0.7% at $88,081 by 09:36 ET (14:36 GMT).
Bitcoin has fallen more than 6% over the past week, tracking a broader risk-off shift in global financial markets. The move has been driven by growing uncertainty over monetary policy, sharp fluctuations in foreign exchange markets, and increased volatility in U.S. Treasury yields.
Liquidations and Fed caution pressure crypto
Last week’s selloff was intensified by forced liquidations in crypto derivatives markets, where highly leveraged positions were rapidly unwound. Market data shows that more than $1 billion in leveraged crypto positions were liquidated during the recent turmoil, with long Bitcoin trades accounting for most of the losses.
Such liquidations tend to accelerate price declines, as automatic position closures add to downward momentum.
Earlier this year, Bitcoin had rallied strongly on expectations of looser U.S. monetary policy and continued inflows into spot exchange-traded products. However, sentiment has turned more defensive as investors reassess the interest-rate outlook and cut exposure to risk assets amid sharp moves in currency and bond markets.
Focus is now firmly on the Fed’s two-day policy meeting, which concludes on Wednesday. While policymakers are widely expected to leave rates unchanged, markets will closely follow comments from Fed Chair Jerome Powell for signals on the timing and scale of potential rate cuts later this year.
Investors are also watching for clues on liquidity conditions and the future path of the Fed’s balance sheet, both seen as important drivers for crypto markets.
Adding to uncertainty, traders are awaiting an expected announcement from U.S. President Donald Trump regarding his nominee for the next Federal Reserve chair. The appointment could shape future monetary policy, particularly if the nominee is viewed as more dovish or closely aligned with the administration’s economic agenda.
Strategy expands Bitcoin exposure
Meanwhile, Strategy Inc disclosed that it purchased an additional 2,932 bitcoins for roughly $264 million between January 20 and January 25, according to a regulatory filing released Monday. The company paid an average price of $90,061 per coin.
The latest purchase brings Strategy’s total Bitcoin holdings to 712,647 BTC, with an estimated market value of about $62.5 billion. The Michael Saylor-led firm has accumulated its holdings at an average cost of $76,037 per bitcoin, translating to a total investment of roughly $54.2 billion, including related expenses.
Altcoins remain under pressure
Most major altcoins also traded weakly on Monday, extending recent losses amid cautious market sentiment.
Ethereum slipped 0.4% to $2,916.08, while XRP rose 1.5% to $1.91. Solana fell 1.8%, while Cardano and Polygon were little changed.
Among meme tokens, Dogecoin edged up 0.3%, while $TRUMP declined 1%.
