Cryptocurrency Market Losses Extend Into Second Week Amid Macroeconomic Uncertainty

The cryptocurrency market continued its downward trajectory on Monday morning, with major tokens posting losses amid heightened investor caution driven by macroeconomic concerns.

Bitcoin (BTC) dropped 3.2% in the past 24 hours to trade near $92,000, while Ethereum (ETH) fell 7.2%, holding at approximately $3,050. XRP declined by 2.2% to $2.47, while Solana (SOL) fell 5.9% to $178. The overall cryptocurrency market capitalization decreased by 5.2% to $3.33 trillion, according to CoinGecko.

In the past 24 hours, 256,111 traders were liquidated, with total liquidations reaching $707 million, according to CoinGlass. ETH accounted for $172 million in liquidations, while BTC followed with $157 million. Altcoins recorded around $147 million in liquidations.

Experts attribute the recent losses, which started last Tuesday, to upbeat economic data, including stronger-than-expected initial jobless claims and labor force participation rates. This data reinforced concerns that interest rates could remain elevated for longer than anticipated.

“There appears to be a great deal of fear in the market that we may not see another rate cut at all in 2025, especially with an incredibly strong jobs report coming out on Friday,” said Chris Chung, CEO and founder of Titan. ”But we also had a big run up in December, so it’s not unusual for the market to reset after such a big pump.”

He noted that with U.S. President-elect Donald Trump’s inauguration scheduled for next week, there remains "further downside risk" in the crypto market.

“Everyone expects Trump to announce pro-crypto regulations on day one, but he probably will start with more pressing issues for the Republican party while they control both the House and the Senate,” Chung said. “Coupled with macro concerns and upcoming token unlocks, this market reset could last well into February or even March.”

CoinShares Data

In its weekly funds report, CoinShares revealed that cryptocurrency exchange-traded products (ETPs) saw modest inflows of $48 million last week, following a notable sell-off in Bitcoin-focused investment products.

Investors poured approximately $1 billion into cryptocurrency exchange-traded products (ETPs) during the first half of the week, but the inflows were largely offset by $940 million in outflows.

“This suggests that the post-US election honeymoon is over, and macroeconomic data is once again a key driver of asset prices,” CoinShares research lead James Butterfill noted in the report.