Analysis: Bitcoin Selloff Triggered by Macro Fears, Not News

Bitcoin plunges on macro fears, liquidates over $500 million as market sentiment sours.

  • Bitcoin sharply fell 4.6% from $67,600 to $64,435 during early Asian trading on Monday, triggering over $500 million in market liquidations.
  • Analysts link the selloff to macro factors like U.S. tariff policy uncertainty, sticky inflation, and geopolitical risks, not a crypto-specific event.
  • Bitcoin and Ethereum positions accounted for nearly 70% of the total liquidations, highlighting their market dominance.
  • Market sentiment has soured, with predictors on Myriad cutting the chance of a Bitcoin rally to $84,000 from 46% to 37%.

Bitcoin’s price crashed early Monday in Asia, shedding over $3,000 in two hours and liquidating more than $500 million in leveraged positions across the market. This swift decline from $67,600 to $64,435 underscored crypto’s continued volatility.

- Advertisement -

The downturn was “driven by policy uncertainty stemming from fluctuations in U.S. tariff policy, compounded by rising geopolitical risks,” according to HashKey Group senior researcher Tim Sun. He emphasized that crypto assets remain anchored at the far end of the risk curve, causing them to drop as broader risk appetite contracted.

Consequently, Bitcoin and Ethereum positions accounted for the vast majority of the carnage, data from CoinGlass shows. Meanwhile, traders grew pessimistic about near-term rate cuts, with the FedWatch tool showing a 96% chance rates hold steady.

This macro pressure has significantly dampened market sentiment. Predictors now assign just a 21% chance of a large Fed cut before July, down from 40% earlier in the month. Sun noted that without a stabilization in traditional risk assets like stocks, crypto is unlikely to mount an independent recovery.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

- Advertisement -

Previous Articles:

- Advertisement -

Latest News

Mystery Firm Laurore Ltd Buys $436M BlackRock Bitcoin ETF Stake

A mysterious offshore entity, Laurore Ltd, filed its first-ever SEC disclosure to reveal a...

Analyst Sees Nvidia Sales Soaring 65% in 2026

Analyst Gene Munster projects NVIDIA sales could grow 65% this year and 40% in...

Ethereum Flirts with $1,500 Support Amid Selling Pressure

Ethereum has entered the breakdown phase of its prevailing bearish continuation pattern.ETH price may...

MuddyWater’s Operation Olalampo Targets MENA with AI Malware

The Iranian state-sponsored hacking group MuddyWater has launched a new campaign called Operation Olalampo,...

CZ Sees Crypto Capital Moving to RWAs and Prediction Markets

Former Binance CEO Changpeng "CZ" Zhao predicts the next major focus for crypto capital...

Must Read

9 Best Trading Platforms for Crypto Beginners

Many newcomers to the crypto space are looking for platforms to buy, sell and exchange cryptocurrencies. While there are hundreds of crypto exchanges around...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!