Bitcoin also suffered from the removal of rate cut expectations and the price crashed to November 2024 lows.
BTCUSD – Daily Chart
BTC crashed to $76,000 0n Saturday and is now in extreme oversold positioning. Monday’s bounce has taken the price back to the $78,000 level.
Monday could be a problem for crypto markets if money gets drawn from metals and bitcoin ETFs.
Big expectations for both led to a speculative rally that was meant to be supported by Donald Trump, who was touted as a pro-crypto President. Some are questioning his decision to crash his own crypto portfolio after nominating Kevin Warsh.
Another topic being discussed is the holdings of Strategy, which are held at a cost basis of around $76,000. Investors are questioning if the company will be forced sellers of bitcoin.
The company currently holds over 700,000 BTC, with its stock price at $143, having dropped nearly 70% from its highs of $455 in July last year. That could lead to heavy losses on Monday for the company’s stock.
Bitcoin and the broader crypto market suffered big losses on leveraged liquidations again. Ethereum has suffered an 18% drawdown over the last seven days, XRP down by 13%. Data from CoinGlass showed that the collapse in markets led to the liquidation of roughly $2.58 billion in trader positions.
Bitcoin had been suffering from slower demand after the $19 billion liquidation that was sparked by Trump in October. Investors had been scared out of the crypto market due to volatility, but volatility has now spread to metals after a strong rally in the last two years. Bitcoin traders should be on guard for forced selling of BTC this week that may cap any rebound attempt in the token.
Bitcoin’s market cap is now treading near the $1.5 trillion level, after highs of almost $2.5 trillion earlier in the year.
