Bitcoin fell sharply below the $100,000 mark on Monday, extending its recent losses as crypto investors pulled back amid renewed concerns over global risk sentiment and tightening liquidity conditions. The world’s largest cryptocurrency dropped nearly 6% in early U.S. trading, briefly touching $97,800, before recovering slightly to trade near $99,200.
The decline marks Bitcoin’s steepest one-day fall in nearly three weeks, as broader financial markets turned defensive following hawkish comments from several central bank officials. The U.S. dollar index strengthened modestly, while yields on Treasury bonds rose, signaling investors’ shift toward safer assets.
“Crypto markets are feeling the weight of risk aversion once again,” said Ethan Cole, a digital asset strategist at Apex Markets. “After weeks of speculative buying, traders are now locking in profits and reassessing positions in light of tightening global liquidity and macro uncertainty.”
The sell-off also coincides with a downturn in major altcoins. Ethereum (ETH) slipped nearly 4% to around $4,850, while Solana (SOL) and XRP posted losses of over 5% each. The total crypto market capitalization fell by about $120 billion in 24 hours, according to CoinMarketCap data.
Market analysts attribute Bitcoin’s drop to multiple short-term pressures — including profit-taking after its recent rally past $105,000, renewed strength in the dollar, and a broader pullback across high-risk assets such as equities and emerging market currencies. Technical indicators also pointed to overbought conditions, suggesting a correction was due.
Still, many long-term investors remain optimistic. “Despite the short-term volatility, institutional flows into Bitcoin remain healthy,” noted Sara Mitchell, head of digital research at Horizon Investments. “Corrections like this are part of a maturing market cycle, especially after such a strong run earlier this quarter.”
On-chain data shows that Bitcoin’s exchange inflows have increased slightly, suggesting traders may be preparing to sell or reposition holdings. Meanwhile, open interest in Bitcoin futures has declined, indicating some unwinding of leveraged positions.
For now, traders are closely watching the $95,000–$98,000 range as a key support zone. A decisive break below this level could open the door for further downside toward $92,000, while a recovery above $100,500 may signal renewed buying interest.
As global markets remain on edge, Bitcoin’s latest dip highlights just how quickly sentiment can shift in the volatile world of digital assets.