Bitcoin tumbled from record highs above $124,000 to nearly $115,000 on Monday, triggering over $570 million in liquidations as leveraged positions collapsed.
• The sell-off was driven by profit-taking from large holders (“whales”) and macroeconomic concerns, particularly after higher-than-expected U.S. wholesale inflation data raised doubts about Federal Reserve rate cuts.
• The broader crypto market fell below $4 trillion in total value, with Ethereum dropping 4.8% to $4,256 and Solana sliding 5.7%, while only select tokens like Chainlink posted gains.
• A U.S. Treasury policy shift suspending new government Bitcoin purchases added regulatory uncertainty to the market downturn.
• Despite the volatility, institutional adoption continues with companies like Metaplanet adding 775 BTC to reserves, highlighting the sector’s ongoing maturation amid high-stakes trading.
Why it matters
Bitcoin’s dramatic retreat from record highs exposes crypto’s persistent volatility while institutional adoption grows. The $570M liquidation wave and policy uncertainty signal how quickly sentiment shifts, impacting retail investors and corporate treasuries globally as digital assets become mainstream.