What happened: Bitcoin (BTC-USD) dropped roughly 2% on Monday, extending losses to $76,400, its lowest level since late April.
What’s behind the move: The world’s largest cryptocurrency continued to decline over the weekend as rising bond yields put pressure on risk assets. Bitcoin saw a massive wave of forced selling over the past 24 hours as investors wiped out more than than $182 million in positions, according to CoinGlass data. The vast majority of these losses came from buyers who had placed bullish, leveraged bets that the price would rise.
Also on Monday, Bitcoin Depot (BTM), once the largest crypto ATM operator in North America, filed for Chapter 11 bankruptcy after calling its business model “unsustainable” amid lawsuits and mounting regulatory pressure, including from some states that outright banned the machines.
Read more: Is bitcoin’s price volatility an investing opportunity? Here’s how to buy bitcoin.
What else you need to know: The drawdown comes as markets have grown increasingly nervous about rising bond yields and persistent inflation, while a standstill in the Strait of Hormuz has kept oil prices elevated.
“With further escalation in the Middle East and the continued geopolitical premium in oil, a Bitcoin breakout below $76,000 becomes increasingly likely,” wrote Ivan Patriki, co-Founder of QuantMap, a market analysis platform.
“For now, everything favors a cautious scenario,” he added. “Bitcoin is naturally correcting after a strong surge.”
The move lower comes after the token advanced past $81,000 last week as a major crypto bill advanced in Congress.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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