The crypto market remained under heavy pressure on Monday as escalating geopolitical tensions, surging oil prices, sticky U.S. inflation data, and a massive wave of leveraged liquidations weakened investor sentiment across digital assets.
Summary
- The total crypto market capitalization fell 3.8% to $2.56 trillion as Bitcoin dropped below $77,000 amid rising macroeconomic and geopolitical pressure.
- More than $661 million in crypto positions were liquidated over the past 24 hours, with nearly 95% of the wipeout coming from bullish long trades.
- WTI crude climbed above $107 while U.S. spot Bitcoin ETFs recorded over $1 billion in weekly outflows as stalled U.S.-Iran talks and sticky inflation weakened risk appetite.
The total cryptocurrency market capitalization fell roughly 3.8% over the past 24 hours to around $2.56 trillion, while Bitcoin (BTC) dropped more than 4% to fall below the key $77,000 support level and hit a multi-week low before recovering slightly at press time.
Ethereum (ETH) declined nearly 6% toward the $2,100 region, while major altcoins, including Solana (SOL), XRP (XRP), BNB (BNB), Dogecoin (DOGE), and Hyperliquid (HYPE), posted losses ranging between 5% and 12%.
According to CoinGlass data, more than $670 million worth of crypto positions were liquidated over the past 24 hours, with bullish long positions accounting for nearly 95% of the wipeout.
The latest market decline accelerated after investors reacted to another round of hotter-than-expected U.S. inflation data.
Recent Producer Price Index data surged 6% year-over-year following a stronger-than-expected Consumer Price Index reading of 3.8%, reinforcing fears that inflation remains stubbornly elevated across the U.S. economy.
The stronger inflation readings significantly reduced expectations for short-term Federal Reserve interest rate cuts. Instead, traders have increasingly started pricing in the possibility that rates could remain elevated for longer or potentially rise further if inflationary pressures continue intensifying.
At the same time, U.S. 10-year Treasury yields climbed from around 4.5% to 4.6%, increasing the attractiveness of safer fixed-income assets relative to speculative investments such as cryptocurrencies.
Higher yields and tighter monetary conditions typically reduce liquidity across financial markets, often leading investors to scale back exposure to high-risk assets, including Bitcoin and altcoins.
Oil prices extend gains as Iran negotiations hit deadlock
Investor sentiment also deteriorated as geopolitical tensions involving the United States and Iran continued escalating.
WTI crude futures climbed 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 stalled U.S.-Iran peace talks and the continued near-shutdown of the Strait of Hormuz raised fears of a broader global supply disruption.
In a Truth Social post on Sunday, President Donald Trump warned that “the clock is ticking” for Iran and urged Tehran to “get moving, FAST,” while Iranian media reports suggested negotiations remain deeply divided with the U.S. offering “no tangible concessions.”
Rising oil prices intensified concerns that energy-driven inflation could delay potential monetary easing from central banks and further weaken appetite for speculative assets such as cryptocurrencies.
Bitcoin ETF outflows and liquidations accelerate selloff
Meanwhile, Bitcoin’s breakdown below major psychological support zones near $80,000 and $78,000 triggered a cascade of automated liquidations across leveraged derivatives markets.
The sharp decline forced exchanges to close large volumes of overleveraged bullish positions, accelerating downside momentum as stop-loss orders continued getting triggered across the broader market.
Institutional flows also weakened considerably over the past week.
U.S. spot Bitcoin ETFs recorded more than $1 billion in cumulative net outflows, ending a strong multi-week inflow streak that had previously supported bullish market momentum. Spot Ethereum ETFs also extended their recent streak of outflows, signaling weakening institutional demand across the broader crypto sector.
On-chain data additionally showed that Bitcoin miners sold roughly 800 BTC worth approximately $64 million to secure profits amid deteriorating market conditions.
At the same time, investor sentiment faced additional pressure after Michael Saylor-led Strategy disclosed risks tied to potentially selling Bitcoin to help manage convertible note obligations, further adding to near-term uncertainty surrounding corporate BTC demand.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
