Bitcoin slid sharply earlier, briefly approaching the $108,000 level, while major altcoins suffered deeper losses over two sessions. Ethereum fell 8% after reaching a record high, then rebounded to fresh highs above $4,900, reclaiming 2021 losses. More than $1.6 billion of futures long positions were liquidated since Friday, with nearly $470 million tied to Bitcoin, as leverage reduction intensified after last Friday's gains. A Friday rally following Jerome Powell's remarks drew buyers who failed to hold positions, triggering further liquidations. A similar deleveraging followed the U.S. Producer Price Index shock two weeks earlier. Bitcoin faces correction risks and added headwinds from growing exposure to large Treasury firms.
Bitcoin's consecutive declines come amid a renewed wave of leverage reduction in the market, which had flared up again following last Friday's gains. According to CoinGlass data, more than $1.6 billion worth of futures long positions have been liquidated since Friday, with Bitcoin accounting for nearly $470 million of these liquidations. Friday's sharp rally following Jerome Powell's remarks appeared to entice buyers back into building up their positions. However, their failure to maintain control quickly deepened losses and triggered a new chain reaction of liquidations.
According to Bloomberg, Bitcoin's decline also comes amid surging momentum around Ethereum. After briefly falling near $1,400, the world's second-largest cryptocurrency has since reclaimed all the losses from 2021, hitting fresh highs above $4,900 on Sunday. Ethereum's outperformance, coupled with mounting institutional adoption, has bolstered its dominance in the crypto market at the expense of Bitcoin. Bitcoin's market cap share has dropped from about 66% at its peak earlier this year to around 60%, while Ethereum's dominance has doubled from 7% to over 14%.
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