Bitcoin dropped sharply on Monday, falling below €75,000 as the cryptocurrency market continued its steep decline.
Cryptocurrencies started another losing month as Bitcoin fell over 5% in European trading on Monday morning.
After reaching about €110,000 in early October, Bitcoin plunged due to heavy liquidations and widespread sell-offs.
In November, Bitcoin lost more than 16% of its value, briefly touching €74,000.
Other major tokens fell sharply as well, with Ethereum and Solana dropping over 5%, extending October’s downward trend.
Bitcoin attempted short-term rebounds last month, but prices soon resumed their decline.
Risk Aversion Drives Sales
Investors sold risky stocks and reduced inflows into Bitcoin ETFs over the past several weeks.
An ETF bundles assets like stocks, bonds, commodities, or Bitcoin into one product that investors can buy.
Investors sell ETF shares when underlying asset prices fall, causing the overall ETF value to drop.
Global market uncertainty and weaker economic signals pressured Bitcoin as traders offloaded riskier holdings.
Hopes for early rate cuts by central banks, including the US Federal Reserve and Bank of England, evaporated.
Experts also blame aggressive trading strategies by professional investors for accelerating the decline.
Bitcoin Mirrors Tech Stock Volatility
Many investors expected Bitcoin to act as a safe-haven asset like digital gold.
Its recent fluctuations show it behaves more like tech-related stocks than a stable investment.
Nvidia, which soared earlier this year, also experienced sharp dips, reflecting similar tech-linked volatility.
Bitcoin’s unpredictability highlights its sensitivity to broader market trends and investor sentiment.
