The global cryptocurrency market is enduring one of its most turbulent sessions in recent history. As of Monday, Bitcoin (BTC) has plummeted to its lowest level in nearly ten months, flirting with prices not seen since the immediate aftermath of the “Liberation Day” tariff volatility in early 2025. The sell-off, which accelerated over a bruising weekend, has wiped billions from the total crypto market cap, leaving investors to wonder if the digital asset’s “Trump-era” honeymoon is officially over.
A sea of red
As trading progressed through the Asia and European sessions on Monday, Bitcoin’s price action remained Decidedly bearish. According to data from CoinMarketCap and Binance, Bitcoin is currently trading at approximately $77,342, representing a 24-hour decline of roughly 1.7 percent, though it dipped as low as $74,541 earlier in the session.
This “Manic Monday” follows a disastrous January where Bitcoin shed 11 percent of its value, marking its fourth consecutive monthly decline—the longest losing streak since the infamous “crypto winter” of 2018.
Key price levels
- Bitcoin (BTC): $$77,500 (24h Low: $74,541 / 24h High: $79,221)
- Ethereum (ETH): $2,275 (Down 7.1 percent in 24 hours)
- Solana (SOL): $98.40 (Falling back below the psychological $100 barrier)
- Global Crypto Market Cap: $2.65 Trillion (Down over 5 percent on the day)
Read more: Bitcoin sinks below $90,000 as market uncertainty triggers broad crypto selloff
Warsh shock: A u-turn in monetary policy
The primary catalyst for the deepened slide is the political and economic shift in Washington. Markets are still reeling from President Donald Trump’s nomination of former Federal Reserve Governor Kevin Warsh to succeed Jerome Powell as Fed Chair.
Warsh, widely regarded as a “monetary hawk,” has historically been critical of quantitative easing (QE) and the Fed’s bloated balance sheet. His potential leadership signals a “U-turn” from the low-interest-rate environment that Trump previously championed. For Bitcoin—which thrived as a hedge against currency debasement—the prospect of a hawkish Fed aggressively fighting inflation means less liquidity in the system and a stronger U.S. dollar, both of which are toxic for crypto prices.
The squeeze risk and technical fragility
Technical analysts note that while the bears are in control, the market is becoming “extremely stretched.” Bitcoin’s Relative Strength Index (RSI) has dipped into oversold territory (around 22), a level that historically precedes a “countertrend squeeze” or a relief bounce.
However, the “falling knife” remains difficult to catch. Analysts suggest that Bitcoin is currently testing a critical support zone between $73,500 and $75,000. If this floor fails to hold, the next major downside target for Elliott Wave traders is the $60,000–$63,000 range.
Accumulation amidst agony
Despite the carnage, institutional conviction remains a point of contention. Michael Saylor, Executive Chairman of U.S. software company MicroStrategy, signaled continued accumulation on Sunday, revealing that his firm’s holdings have climbed to 712,647 BTC.
Interestingly, Bitcoin’s current price of ~$77,000 is now hovering dangerously close to MicroStrategy’s average purchase cost of $76,038. If Bitcoin drops significantly below this “Strategy Floor,” it could trigger a new crisis of confidence among the institutional “treasury” buyers who have underpinned the market for the last year.
Beyond crypto: The macro meltdown
The recent crypto sell-off is not occurring in isolation; instead, it reflects a broader “risk-off” sentiment that has taken hold of global markets. One significant factor contributing to this trend is the turmoil within the tech sector, notably the “AI Rout.” Tech giants, such as Microsoft, have witnessed nearly $400 billion wiped off their market capitalizations in just a few days, largely due to disappointing growth figures from Azure. As the enthusiasm surrounding AI faces a sobering reality, it has negatively impacted high-growth assets, including cryptocurrencies.
Additionally, in an unexpected turn of events, precious metals like gold and silver—typically viewed as safe havens—suffered substantial losses. On Monday, gold plummeted over 4.5 percent, dropping to approximately $4,600 per ounce. This decline indicates a significant deleveraging event across all asset classes, as traders increasingly seek the security of “cold hard cash.”
Is the bottom in?
As the Monday session draws toward the U.S. opening, the sentiment remains fragile. Bloomberg Intelligence strategist Mike McGlone has issued a stark warning, suggesting that 2026 could be “reminiscent of 2008,” with a potential eventual floor for Bitcoin as low as $10,000 if the macro-economic environment continues to deteriorate.
For now, the $74,000 level remains the “line in the sand.” If Bitcoin can stabilize here, a short-term rally to $80,000 is possible. If not, the crypto market may be entering a deeper, more corrosive phase of its 2026 bear cycle.
