Bitcoin Slides Below $77K as Liquidations Surpass $661 Million Monday
Bitcoin tumbled sharply to start the week as a perfect storm of macroeconomic headwinds and geopolitical unrest rattled the broader digital asset market. The total crypto market capitalization fell 3.8% to $2.56 trillion as Bitcoin dropped below $77,000 amid rising macroeconomic and geopolitical pressure. More than $661 million in crypto positions were liquidated over the past 24 hours, with nearly 95% of the wipeout coming from bullish long trades.
Surging oil prices compounded the selling pressure, with WTI crude climbing above $107 while U.S. spot Bitcoin ETFs recorded over $1 billion in weekly outflows as stalled U.S.-Iran talks and sticky inflation weakened risk appetite. Recent Producer Price Index data surged 6% year-over-year following a stronger-than-expected Consumer Price Index reading of 3.8%, reinforcing fears that inflation remains stubbornly elevated and significantly reducing expectations for near-term Federal Reserve interest rate cuts.
Japan and CME Signal Fresh Institutional Momentum
Despite Monday's turbulence, the weekend had delivered a pair of encouraging institutional headlines. Japanese financial giants SBI Securities and Rakuten Securities announced plans to launch their own Bitcoin- and Ethereum-based trust funds, which could open the door to digital assets for millions of retail investors there. The CME Group also announced the launch of new Nasdaq CME Crypto Index futures contracts set to debut in June, pointing to deepening integration between traditional finance and crypto markets.
Strategy, formerly MicroStrategy, added a different kind of institutional intrigue after Executive Chair Michael Saylor confirmed the firm will probably sell some Bitcoin to fund a dividend and manage its balance sheet. The company, which holds one of the largest corporate Bitcoin treasuries in the world, stated in a recent regulatory filing that it intends to fund massive debt repurchases using a combination of cash reserves, common stock sales, and potentially proceeds from the sale of Bitcoin. The admission marks a notable shift from the firm's previously unwavering accumulation stance.