Bitcoin Slips Under $77,000 as Inflation Surprise and Geopolitical Strains Hit Crypto
The crypto market extended its slide Monday as stronger-than-expected U.S. inflation data, rising oil prices and stalled U.S.-Iran negotiations pushed investors toward a risk-off stance, according to CoinDesk.
Total crypto market capitalization fell about 3.8% over the past 24 hours to $2.56 trillion. Bitcoin briefly dipped below $77,000 after breaking key levels near $80,000 and $78,000.
CoinGlass data showed more than $670 million in crypto positions were liquidated over the same period, with nearly 95% tied to long positions. The wave of forced liquidations in leveraged trades added to downside momentum.
Ethereum briefly approached $2,100 before dropping nearly 6%. Major tokens including SOL, XRP, BNB, DOGE and HYPE also moved lower, posting declines of roughly 5% to 12%.
Macro conditions continued to weigh on risk appetite. The latest U.S. Producer Price Index rose to 6% year over year, following a Consumer Price Index increase of 3.8% year over year; both readings came in above market expectations, reducing hopes for near-term Federal Reserve rate cuts. The U.S. 10-year Treasury yield climbed from around 4.5% to 4.6%, boosting the appeal of fixed income and discouraging allocations to higher-risk assets such as cryptocurrencies.
Geopolitical tensions added to the pressure. With U.S.-Iran talks at an impasse, WTI crude futures rose above $107 per barrel, extending last week's rally and fueling concerns over imported inflation.
Flows also turned negative. U.S. spot Bitcoin ETFs posted cumulative net outflows of more than $1 billion last week, ending a multi-week stretch of net inflows. Spot Ethereum ETFs continued to see outflows, signaling softer institutional demand.
On-chain data indicated Bitcoin miners recently sold about 800 BTC, worth roughly $64 million at the prices cited in the report. Strategy also disclosed risks tied to its convertible debt obligations, drawing attention to the company's future plans for its Bitcoin holdings.
