Bitcoin Hovers Near Monthly Lows as Fed Jitters and Liquidations Weigh

Bitcoin traded close to one-month lows on Monday, extending last week’s sharp losses as investors stayed cautious ahead of the Federal Reserve’s policy meeting and after heavy liquidations rippled through leveraged crypto markets.

The world’s largest cryptocurrency slipped 0.2% to $80,185 by early European trading. Bitcoin is down more than 6% over the past week, mirroring a broader risk-off move across global markets driven by uncertainty over monetary policy, volatile currency moves, and sharp swings in U.S. Treasury yields.

The selloff was amplified by forced liquidations in derivatives markets. More than $1 billion in leveraged crypto positions were wiped out during last week’s turbulence, with long Bitcoin bets accounting for most of the damage. Such liquidations tend to accelerate declines as positions are automatically closed, adding to downward pressure.

Bitcoin had rallied earlier this year on hopes of easier U.S. monetary policy and steady inflows into spot exchange-traded products. But sentiment has turned defensive as investors reassess the outlook for interest rates and trim exposure to risk assets.

Attention is now firmly on the Federal Reserve’s two-day meeting, which concludes Wednesday. While rates are expected to remain unchanged, traders will closely parse Chair Jerome Powell’s remarks for guidance on the timing and scale of any rate cuts. Signals on liquidity conditions and the Fed’s balance sheet are also seen as crucial for crypto markets.

Adding another layer of uncertainty, markets are awaiting President Donald Trump’s expected nomination for the next Federal Reserve chair—a move that could shape expectations for future monetary policy.

Altcoins remained under pressure alongside Bitcoin. Ethereum slipped 1.5% to $2,898, XRP eased 0.8% to $1.88, Solana fell 3%, while Cardano and Polygon lost about 1.5% each. Dogecoin edged down 0.8%, and $TRUMP fell 1%.