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Bitcoin Price Falls to Monthly Low Amid Fed Concerns
Bitcoin traded near monthly lows on Monday, extending its sharp decline from last week, as investors remained cautious ahead of the Federal Reserve’s policy meeting and following large-scale liquidations in highly leveraged cryptocurrency markets.
The world’s largest cryptocurrency was last trading 0.2% lower at $80,185.6 as of 05:05 GMT.
Bitcoin’s price has fallen more than 6% over the past week amid a broader decline in risk appetite across financial markets, driven by rising uncertainty over global monetary policy, sharp fluctuations in currency markets, and volatility in U.S. Treasury yields.
Liquidations and Fed Caution Weigh on Crypto Markets
Last week’s sell-off was exacerbated by forced liquidations in derivatives markets, where highly leveraged positions were rapidly closed.
According to market data, more than $1 billion worth of leveraged crypto positions were liquidated during the recent turbulence, with the bulk of losses stemming from long Bitcoin positions. Such liquidations typically amplify price declines, as positions are automatically closed, reinforcing downward momentum.
Earlier this year, Bitcoin posted strong gains, supported by expectations of U.S. monetary policy easing and steady inflows into spot exchange-traded products. However, sentiment has turned more cautious as investors reassessed interest rate expectations and reduced exposure to risk assets amid sharp moves in currency and bond markets.
Attention is now firmly focused on the Federal Reserve’s two-day policy meeting, which concludes on Wednesday. Markets broadly expect the Fed to keep interest rates unchanged, but traders will closely scrutinize comments from Chair Jerome Powell for clues on the timing and scale of potential rate cuts later this year.
Investors are also watching for signals regarding liquidity conditions and the Fed’s balance sheet, which are viewed as key drivers of cryptocurrency market dynamics.
Another source of uncertainty is the expected announcement by U.S. President Donald Trump of a candidate for the position of the next Federal Reserve Chair.
This appointment is seen as potentially influential for the future direction of monetary policy, particularly if the new leadership is perceived as more “dovish” or more aligned with the administration’s economic priorities.
Crypto Prices Today: Altcoins Remain Weak
Most altcoins also declined on Monday, extending losses amid cautious sentiment.
The world’s second-largest cryptocurrency, Ethereum, fell 1.5% to $2,897.92.
The third-largest cryptocurrency, XRP, slipped 0.8% to $1.88.
Solana dropped 3%, while Cardano and Polygon each declined by 1.5%.
Among meme tokens, Dogecoin fell 0.8%, and $TRUMP slid 1%.
See also: "AI ChatGPT predicts Bitcoin price for February 1, 2026"
