Bitcoin slumped sharply amid intensifying speculation over the selection of the next U.S. Federal Reserve chair. Trading at $82,300 during early Asian hours, Bitcoin reached its lowest level since November, marking a 2.5% decline in a single session. The sell-off coincided with the dollar’s rebound, driven by prospects that the incoming Fed chair may adopt a more hawkish stance on monetary policy, reducing cash injection into financial markets and diminishing support for risk assets.
Market participants noted that Bitcoin’s fourth consecutive monthly loss represents its longest downturn since 2018, when digital asset markets experienced a similar stretch of weakness. Data from liquidity trackers indicated that leveraged long positions worth over $1.5 billion were liquidated across major cryptocurrencies in the past 24 hours, intensifying downward pressure. Analysts attributed accelerated selling to growing concerns that a more restrictive Fed posture would curtail speculative flows into cryptocurrencies, historically viewed by some investors as hedges against monetary easing.
On-chain metrics showed heightened activity on decentralized exchanges and a surge in stablecoin inflows, as traders shifted exposure away from volatile assets. Spot Bitcoin ETFs in the U.S. recorded net outflows, amplifying market losses. Industry observers highlighted that the combination of technical breakdowns below key support levels and macroeconomic headwinds had undermined bullish sentiment. Fear and greed indices registered extreme fear readings, reflecting pervasive caution among both retail and institutional participants.
Despite the recent downturn, long-term holders continued to accumulate on dips, according to on-chain supply data. Crypto asset custodians reported increased demand for secure storage solutions, suggesting that some investors are positioning for eventual recovery. However, the immediate outlook remains uncertain, with chart analysts warning that sustained negative momentum could drive Bitcoin below the next major support zone around $80,000.
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