Bitcoin suffered its steepest decline since March on Monday, dropping to $93,000 during Asian trading hours as market expectations for a December Federal Reserve rate cut diminished significantly. The cryptocurrency market faced intense selling pressure amid broader risk-off sentiment across global equities. The digital asset experienced widespread liquidations totaling $617.45 million within 24 hours. Long positions accounted for $394.50 million of the losses, while short positions contributed $222.95 million. Bitcoin alone saw $242.19 million in liquidations, with Ethereum following at $169.06 million. The largest single liquidation event wiped out a $30.60 million Bitcoin position on Hyperliquid. Market pricing for a December Federal Reserve rate cut dropped to approximately 40% from over 60% just one week earlier, prompting investors to shift capital away from high-risk assets. This dramatic reversal in expectations sent ripples through cryptocurrency markets and traditional financial instruments alike. At press time, Bitcoin was trading near $95,081, representing a 0.85% decline over the last 24 hours. The total cryptocurrency market capitalization fell to $3.31 trillion, down 0.9% from previous levels. Ethereum declined by 0.7% to $3,183, while XRP showed relative strength with a 0.3% gain to $2.24. Global Markets Echo Risk-Off Sentiment Traditional markets set a bearish tone heading into the week. Wall Street futures weakened following Friday's substantial losses, which saw the Dow Jones Industrial Average drop 1.65%, the S&P 500 fall 1.66%, and the Nasdaq Composite decline 2.29%. Technology stocks bore the brunt of selling pressure as investors reassessed valuations built on artificial intelligence optimism. European markets opened defensively. Germany's DAX fell 1.39%, while the FTSE 100 slipped 1.05%. France's CAC 40 eased 0.11%, and the Euro Stoxx 50 lost 0.83%. Asian markets followed with mixed but predominantly negative openings. Japan's Nikkei 225 dropped 1.77%, Australia's S&P ASX 200 fell 1.35%, and New Zealand's benchmark declined 1.58%. Shanghai edged down a modest 0.16%. The coordinated weakness across global markets reflected growing concerns about the trajectories of monetary policy. Traders shifted toward cash positions as expectations of a rate cut evaporated. The shift marked a significant change from recent months when easier policy hopes had supported risk assets. Federal Reserve Policy Uncertainty Weighs Federal Reserve Chair Jerome Powell's recent statement that a December rate cut is ”not a foregone conclusion, far from it” has resonated with market participants. Several Federal Open Market Committee members expressed caution about additional easing given persistent inflation concerns and limited economic data due to government disruptions. Boston Fed President Susan Collins indicated hesitancy toward further rate cuts without evidence of notable labor market deterioration, particularly given limited inflation information. The uncertainty has created headwinds for speculative assets like cryptocurrencies that benefit from looser monetary conditions. Bitcoin had previously rallied on expectations of accommodative policy. The reversal in rate expectations forced traders to unwind positions rapidly. Spot Bitcoin ETF outflows accelerated as institutional investors reduced exposure. Thinning liquidity exacerbated price movements during the Asian session.
