- Bitcoin fell more than 3% as over $321 million in crypto positions were liquidated within 24 hours.
- Rising geopolitical tensions and heavy long liquidations accelerated selling across the broader crypto market.
- Investors are also watching the upcoming CLARITY Act hearing, which could shape the future of U.S. crypto regulation.
Bitcoin came under heavy selling pressure on Monday, falling more than 3% to around $61,860 as volatility returned to the cryptocurrency market. Despite the price decline, trading activity surged, with Bitcoin’s 24-hour trading volume jumping nearly 50% to approximately $27.5 billion.
The spike in trading volume reflected increased market activity as investors rushed to reduce exposure and close positions amid growing uncertainty. The selloff also spread across major altcoins, highlighting broader weakness throughout the digital asset market.
Liquidations Fuel Bitcoin’s Decline
A major driver behind Bitcoin’s sharp decline was a wave of leveraged liquidations across the crypto market.
According to CoinGlass, nearly 79,400 traders were liquidated over the past 24 hours, bringing total cryptocurrency liquidations to roughly $321.7 million.
Bitcoin alone accounted for approximately $95.6 million in liquidations, with long positions representing more than $83 million of the total. The imbalance suggests many bullish traders were caught off guard as prices moved sharply lower, adding further selling pressure as leveraged positions were automatically closed.
Geopolitical Tensions Add to Market Uncertainty
Investor sentiment was also affected by growing geopolitical concerns in the Middle East.
Markets reacted after President Donald Trump announced that the United States would act as the “Guardian of the Hormuz Strait,” introducing a blockade targeting Iranian shipping and customers. The development raised concerns about potential disruptions to global trade and broader financial markets, prompting investors to move away from risk assets, including cryptocurrencies.
Combined with the surge in liquidations, the geopolitical uncertainty contributed to the sharp decline in Bitcoin and the broader digital asset market.
CLARITY Act Remains a Key Catalyst
Despite the market weakness, investors continue watching regulatory developments in Washington that could influence the industry’s long-term outlook.
Trump recently urged lawmakers to approve the CLARITY Act, arguing that the United States must maintain its leadership in both cryptocurrency and artificial intelligence while competing with other global powers.
Attention is now turning to the U.S. House Financial Services Committee, which is expected to hold a hearing on the legislation later this week. Many market participants believe the bill could provide greater regulatory certainty for the digital asset industry if it ultimately becomes law.
Altcoins Follow Bitcoin Lower
The downturn extended well beyond Bitcoin, with several major cryptocurrencies posting notable losses.
Although short-term sentiment remains cautious, traders will continue monitoring liquidation data, geopolitical developments, and regulatory progress in Washington for signs that market conditions could begin stabilizing.
Ethereum fell roughly 2% to around $1,770, while XRP dropped approximately 3% to $1.06. Binance Coin (BNB) declined about 2.3%, and Solana also moved lower as investors reduced exposure across the crypto market.
