Bitcoin falls to $77,000: Heavy liquidations; global and Fed worries hit crypto

Bitcoin extended its recent losses and traded near $77,000, marking its fourth straight month of decline. The fall became sharper over the weekend when trading volumes were low. In such conditions, even small sell orders can cause large price moves. Analysts said the main reason for the drop was high leverage in the market. Many traders had taken large positions using borrowed money. When Bitcoin fell below the key $80,000 level, these traders were forced to sell. This triggered a chain reaction of liquidations. Market data showed that nearly $1 billion worth of positions were wiped out in a short time. With fewer buyers in the market, prices dropped quickly instead of falling slowly.

The sell-off was not limited to Bitcoin. The broader crypto market also came under pressure as global risk sentiment weakened. Reports of an explosion at Iran’s Bandar Abbas port unsettled investors and led to selling across risk assets. Ethereum fell below $2,200 during the decline. Other major cryptocurrencies also dropped. BNB fell below $800, Solana traded near $100, Dogecoin slipped close to $0.10, and Cardano fell under $0.30. In total, more than $230 billion was wiped out from the crypto market in a single day. Analysts said this was among the largest single-day liquidation events in the market’s history. Investor sentiment fell into an extreme fear.

Uncertainty over US monetary policy added to market stress. Investors reacted after US President Donald Trump announced that Kevin Warsh would be nominated as the next Federal Reserve chair once Jerome Powell’s term ends in May. Warsh is seen as someone who supports tighter monetary policy. This raised fears of reduced liquidity in financial markets. Such conditions are usually negative for risk assets like cryptocurrencies. The impact was seen beyond crypto. Gold and other precious metals also fell, showing that investors were cutting exposure across markets.
Bitcoin is now down more than 12% so far this year. Ethereum has fallen about 23% during the same period. From last year’s peak, the total crypto market has lost around $1.7 trillion in value. Analysts expect high volatility to continue. Bitcoin is likely to trade between $70,000 and $80,000 in the short term.