Bitcoin is heading toward its steepest monthly decline since the devastating crypto meltdown of 2022, as the digital asset market reels from a sharp and widespread sell-off. The world’s largest cryptocurrency has plunged to a seven-month low, falling below $86,000 and wiping out all gains earned earlier this year.
The downturn has rattled the broader crypto sector, with Ether also tumbling to a four-month low. In just six weeks, nearly $1.2 trillion has been erased from the total market capitalization of cryptocurrencies, signaling a dramatic shift in investor sentiment. Analysts say fading optimism over possible U.S. interest rate cuts has further weakened risk appetite.
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Market observers note that cryptocurrencies often act as a barometer of investor confidence, and the current slide reflects deepening pessimism. The broader financial market is also feeling the strain, with tech stocks slipping and volatility rising. This shift marks a stark reversal from October, when supportive regulatory signals pushed Bitcoin to a record high above $120,000.
Adding to the gloom, last month’s historic crash—triggering $19 billion in liquidations—continues to cast a long shadow. Research firm CryptoQuant reports that Bitcoin market conditions are now the most bearish since the current bull cycle began in early 2023. Even crypto-linked stocks such as MicroStrategy have dropped to one-year lows, showing how the downturn is extending far beyond digital coins.