Crypto Markets Plummet as Rate Hike Fears Grip Investors

Monday saw a sharp downturn across global financial markets, with cryptocurrency prices tumbling amid concerns that U.S. interest rates could remain elevated through 2025. Bitcoin and other major digital assets bore the brunt of this bearish sentiment.

Bitcoin dropped to a staggering low of $89,300, its weakest point since November, before slightly recovering to $91,500. This marks a 4% slide in just one day and a nearly 9% decline over the past week.

The leading cryptocurrency had briefly breached the $100,000 milestone last week, only to reverse course as mixed economic signals fueled uncertainty. At its current price, Bitcoin is down 16% from its record high of $108,000, achieved in December.

Other major cryptocurrencies fared even worse. Ethereum sank by over 7% to $3,044, XRP fell nearly 6% to $2.37, and Solana and Dogecoin saw respective declines of 7% and 6%, with prices landing at $175 and $0.317.

Adding to the market strain, futures traders endured heavy losses. According to CoinGlass, a staggering $544 million in crypto futures positions were liquidated in the past 24 hours, with $472 million of these tied to long positions betting on price increases. Bitcoin accounted for $112 million of the liquidations, leading the market's losses.

The broader economic backdrop, including fears of prolonged high interest rates, continues to weigh heavily on investor sentiment. With volatile conditions persisting, market participants remain cautious about near-term price recovery.