The global cryptocurrency market fell sharply on Monday as renewed macroeconomic caution and a surge in leveraged liquidations triggered widespread losses across major digital assets. The downturn came after the U.S. Federal Reserve signaled that rate cuts are not guaranteed, strengthening the dollar and sending investors fleeing from risk assets.
Bitcoin and Ethereum Lead the Decline
Bitcoin (BTC) slipped to under $106K, down 1.5% in 24 hours and more than 8% over the past week, after briefly losing support above $110,000. The decline was compounded by over $1 billion in leveraged long positions liquidated, amplifying the sell pressure.
Ethereum (ETH) mirrored the weakness, dropping 2.8% in 24 hours to $3,600, with losses extending to 14% over the week as traders trimmed exposure amid fading optimism for ETF inflows.
XRP and BNB See Profit-Taking After Strong October
XRP fell 2.3% to $2.35, ending its short-lived market cap lead over BNB, as capital rotated back toward Bitcoin. Despite strong fundamentals following Ripple Prime’s launch, traders locked in profits after last week’s double-digit surge.
BNB dropped 2.5% to $990, now down 13.7% weekly, hurt by minor technical weakness and broader risk aversion. Analysts noted that despite BNB Chain’s ongoing development and new partnerships, investor sentiment remains defensive.
Altcoins Hit Hardest
The altcoin segment saw the steepest declines. Solana (SOL) fell 4.2% to $167, with losses of 16.5% this week, despite robust DeFi activity. Cardano (ADA) slid 2.9% to $0.5, and Chainlink (LINK) plunged over 5% to $15.4, extending its seven-day drop to 16%, as traders unwound leveraged positions.
Dogecoin (DOGE) dropped nearly 3.5% to $0.16, reflecting reduced retail speculation. TRON (TRX) slipped 1.5%, while Stellar (XLM) and Hyperliquid (HYPE) both saw declines above 13% for the week.
Institutional Outflows Deepen the Pullback
Adding to the pressure, U.S. spot Bitcoin ETFs recorded $1.15 billion in outflows last week, according to market trackers, a clear sign that institutional investors are cooling on risk exposure. Analysts suggest this rotation, paired with macro uncertainty, is contributing to persistent volatility.
Market Outlook
The crypto market remains in a “risk-off” mode, with liquidity thinning and traders cautious ahead of upcoming U.S. economic data releases. Technical analysts warn that if Bitcoin fails to hold above $104,000, further downside toward $101,000–$102,000 could follow.
Despite the short-term weakness, long-term investors remain confident, noting that prior “rodent seasons”, slang for cycles of panic selling before accumulation, often precede strong rebounds once macro conditions stabilize.