Bitcoin price remains subdued near a one-month low as Fed caution and liquidation pressures weigh on sentiment.

Bitcoin hovered near one-month lows on Monday, extending last week’s sharp losses as investors stayed cautious ahead of the Federal Reserve’s policy meeting and amid heavy liquidations in leveraged crypto markets.

The world’s largest cryptocurrency was last down 0.7% at $88,081 as of 09:36 ET (14:36 GMT).

Bitcoin has fallen more than 6% over the past week, pressured by a broader risk-off mood driven by uncertainty over global monetary policy, volatility in US Treasury yields, and sharp swings in foreign exchange markets.

Crypto markets remain under pressure as heavy liquidations and Federal Reserve caution weigh on sentiment.

Last week’s selloff was intensified by forced liquidations in derivatives markets, where highly leveraged positions were rapidly unwound. Market data shows more than $1 billion in leveraged crypto positions were liquidated, with long Bitcoin trades making up most of the losses, amplifying the downward price move.

Bitcoin had surged earlier this year on hopes of easier US monetary policy and steady inflows into spot ETFs, but sentiment has since turned cautious as investors reassess the interest-rate outlook and cut risk exposure amid volatility in currency and bond markets.

Focus now shifts to the Federal Reserve’s two-day policy meeting ending Wednesday. While rates are expected to remain unchanged, markets will watch Chair Jerome Powell’s comments closely for signals on the timing and extent of potential rate cuts later this year.

Investors are also watching signals on liquidity conditions and the Fed’s balance sheet, both key drivers for crypto markets.

Adding to the uncertainty, traders are awaiting US President Donald Trump’s expected announcement of his nominee for the next Federal Reserve chair, an appointment that could shape future monetary policy, especially if the new leadership is viewed as more dovish or closely aligned with the administration’s economic agenda.

Strategy increases its Bitcoin holdings with a $264 million purchase.

Strategy said it bought 2,932 more Bitcoins for about $264 million between Jan. 20 and Jan. 25, paying an average price of $90,061 per coin, according to a regulatory filing released Monday.

The purchase raises the company’s total Bitcoin holdings to 712,647 tokens, valued at roughly $62.5 billion.

Led by Michael Saylor, the firm has accumulated its Bitcoin position at an average cost of $76,037 per coin, bringing total investment to about $54.2 billion, including related expenses.

Crypto price today: Altcoins remain weak

Most altcoins stayed under pressure on Monday, extending losses amid cautious sentiment. Ethereum slipped 0.4% to $2,916.08, while XRP rose 1.5% to $1.91. Solana fell 1.8%, with Cardano and Polygon largely flat. Among meme tokens, Dogecoin edged up 0.3%, while $TRUMP declined 1%.

Sources: Investing