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Bitcoin showed early signs of stabilization on Monday, rising about 1% to trade near the $77,000 level after a sharp weekend selloff shook crypto and broader risk markets. The modest rebound came as the U.S. dollar weakened slightly and market volatility continued to climb, creating a fragile and cautious trading environment.

Despite Bitcoin’s small recovery, overall sentiment across risk assets remains defensive. Volatility indicators are flashing warning signs, while crypto-linked equities extended losses in pre-market trading. Investors are still digesting the market impact of President Donald Trump’s decision on Friday to nominate Kevin Warsh as the next Chair of the Federal Reserve — a move that triggered widespread repositioning across financial markets.

Crypto Equities Under Pressure

U.S.-listed crypto stocks were among the hardest hit as selling pressure carried over into the new week. Strategy (MSTR), the largest publicly traded holder of bitcoin, fell more than 6% in pre-market trading as investors reduced exposure to leveraged bitcoin proxies. Galaxy Digital (GLXY) also dropped over 7%, reflecting broader weakness across crypto-focused investment firms.

Mining and AI-linked crypto companies saw similar declines. IREN and Cipher Mining both slipped around 4%, as falling bitcoin prices and rising volatility weighed on the sector. Coinbase (COIN), the largest U.S. crypto exchange, was also down roughly 4%, signaling that traders remain cautious about near-term trading volumes and retail participation.

The weakness in these equities highlights how closely tied crypto-related stocks have become to broader risk sentiment, especially during periods of policy uncertainty and elevated volatility.

Volatility Signals Rising Uncertainty

Market volatility continues to rise across asset classes. The CBOE Volatility Index (VIX), often referred to as Wall Street’s “fear gauge,” jumped 10% on the day, reflecting growing anxiety in equity markets. At the same time, crypto-specific volatility measures have surged even more sharply.

The Volmex implied volatility index climbed significantly over the past week, rising from around 40 to near 50. Implied volatility represents the market’s expectations for future price swings. Higher readings suggest traders are bracing for larger and more unpredictable moves ahead, rather than a quick return to calm conditions.

This surge in volatility explains why even modest price rebounds, such as Bitcoin’s 1% gain, are being treated cautiously by market participants.

Bitcoin Tracks Dollar Weakness

Bitcoin traded near $77,000 after briefly dipping as low as $74,500 on Saturday during the height of the weekend selloff. Analysts noted that the rebound coincided with a pullback in the U.S. dollar, reinforcing the inverse relationship between Bitcoin and the dollar that has been evident in recent weeks.

The U.S. Dollar Index (DXY), which measures the dollar’s strength against a basket of major currencies, eased back to around 97. Research has shown that when the dollar weakens, bitcoin often benefits as investors look for alternative stores of value or speculative opportunities. Monday’s price action appears to follow that pattern once again.

Pressure Across Commodities

The weakness was not limited to crypto markets. Precious metals remained under heavy pressure following last week’s historic selloff. Gold fell another 4%, trading near $4,700 per ounce, while silver slid roughly 4% to around $82 per ounce. The declines extended the damage caused by forced liquidations and crowded positioning unwinds in the metals market.

Energy markets also struggled. West Texas Intermediate crude oil futures dropped about 5% to $62 per barrel, reflecting concerns about slowing demand and tighter financial conditions.

Equities Show Tentative Stability

In contrast to crypto and commodities, U.S. equity index futures showed mild stabilization. Futures tied to the Nasdaq 100, tracked by the Invesco QQQ ETF, were down less than 1% in pre-market trading, suggesting some investors are selectively stepping back into equities after last week’s volatility spike.

Looking Ahead

While Bitcoin’s rebound offers short-term relief, the broader market environment remains fragile. Rising volatility, policy uncertainty around the Federal Reserve, and continued pressure on risk assets suggest that traders are still in risk-management mode. For now, Bitcoin’s ability to hold above recent lows may depend less on crypto-specific factors and more on macro trends particularly the direction of the U.S. dollar and global liquidity conditions.#Binance #SquareCreators
$BTC

Bitcoin has dropped sharply from its record high, shedding almost 38 percent of its value. It is currently trading around 77,000 dollars, causing worry in crypto markets worldwide. This decline marks the biggest pullback of the ongoing rally, leaving many investors wondering if this correction is a sign of market fatigue or a buying opportunity.
Market volatility increased rapidly as traders reacted to falling prices. Leveraged positions unwound across major exchanges, accelerating downward momentum. Short term sentiment shifted quickly from optimism to caution. Despite this pressure, long term holders continue to analyze broader structural signals within the crypto market cycle.
LATEST: 📊 Bitcoin's 38% drop from its all-time high to $77,000 could mark the deepest pullback of the current bull cycle, with a potential floor between $75,000 and $80,000, says analyst PlanC.
Why This Correction Stands Out From Earlier Pullbacks
Earlier drops in this bull run were mild and short-lived, with buyers quickly pushing prices back up. Now, however, selling has continued for weeks, wiping out substantial gains. This shows a noticeable change in how the market is behaving.
Analyst PlanC called this drop unusually large for a rising market. A 38 percent fall brings the correction close to record levels seen in past bull runs. These kinds of declines often remove excess leverage from the market and can set the stage for a healthier and more lasting recovery.
Analysts Highlight a Critical Price Range for Stabilization
PlanC identified a potential floor between 75,000 and 80,000 dollars. This area forms a well established Bitcoin support zone from earlier consolidation phases. Strong buying activity previously emerged at these levels. That history strengthens confidence in near term price stability.
On-chain data highlights the significance of this Bitcoin support area. Big holders have bought heavily here and usually protect key levels strongly. Their actions may help prevent prices from falling much further during this correction.
Market Structure Still Supports a Broader Bullish Trend
Even with the drop, the longer-term charts look positive. Bitcoin is still above major trend indicators, and the overall market cycle continues to form higher lows. These signs point to a likely continuation of the uptrend rather than a full breakdown.
Broader economic factors also play a big role in this view. Worldwide liquidity stress has eased compared to previous tightening periods. Risk assets tend to find stability in these situations, and Bitcoin has historically reacted well when liquidity conditions get better.
How Trader Behavior Is Changing During This Phase
This pullback has changed how traders think across the market. Earlier rallies were driven by too much leverage, which made the market more fragile. The recent drop has cleared out weaker positions, and after such resets, stronger and healthier participation usually emerges.
Retail sentiment has dropped sharply during this Bitcoin correction, with fear-driven selling dominating short-term moves. Historically, this kind of mood tends to show up near market lows, and seasoned investors often take the opportunity to buy during these emotional swings.
Impact on Altcoins and the Wider Crypto Ecosystem
Altcoins have also faced pressure as Bitcoin volatility increased. Capital has rotated back toward Bitcoin as traders seek relative safety. This shift reflects normal behavior within the crypto market cycle. Bitcoin dominance often rises during corrective phases.
Institutional participants continue monitoring price action closely. Many funds prefer structured entries instead of chasing rallies. A stable base within the Bitcoin support zone could attract fresh institutional demand. That inflow could support the next expansion phase.
What Future Price Action Could Look Like From Here
If Bitcoin stays above 75,000 dollars, it could enter a consolidation phase. Sideways trading often comes before another upward move, and similar patterns have been seen in past cycles. Patience is key during these periods.
If this support fails, Bitcoin could drop further, and analysts would turn to lower historical levels for guidance. For now, the data points to stabilization rather than a panic, suggesting this correction may be nearing its end.
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