Bitcoin began the week under renewed pressure, extending losses by more than 4 percent and retreating toward the $66,600 level amid thin trading volumes due to holidays in several key markets. Reduced liquidity amplified price swings, while investors adopted a more defensive stance ahead of the release of major U.S. economic data and diplomatic talks between Washington and Iran, adding another layer of global uncertainty.
The latest decline comes after a prolonged corrective phase for the cryptocurrency. Last week, Bitcoin briefly approached the psychologically important $60,000 level, marking a near 50 percent drop from its all-time high recorded in October. Analysts point out that the correction reflects not only profit-taking after the previous rally, but also a broader shift in risk appetite as financial markets adjust to a more restrictive and volatile macroeconomic environment.
A key source of bearish pressure remains uncertainty surrounding U.S. monetary policy. Market attention has increasingly focused on the possibility that Kevin Warsh could be appointed Chair of the Federal Reserve. Warsh is widely regarded as less flexible on interest rates, raising concerns that a more hawkish central bank leadership could lead to tighter financial conditions and reduced liquidity for risk-sensitive assets such as cryptocurrencies.
In this context, traders are closely monitoring upcoming U.S. indicators, including industrial production figures, the personal consumption expenditures price index—the Federal Reserve’s preferred inflation gauge—and the central bank’s meeting minutes. Any evidence of persistent inflation or a reduced willingness to cut rates in 2026 could strengthen the U.S. dollar and place further pressure on digital assets, which have historically been sensitive to shifts in monetary policy expectations.
Growing risk aversion is also visible in relative asset performance. While gold remains firm near historic highs, supported by its safe-haven status, technology stocks and digital assets have shown heightened volatility. The correlation between Bitcoin and growth-oriented equities continues to be a key factor, particularly during sessions marked by sharp movements in the Nasdaq and other innovation-driven sectors.
At the corporate level, renewed attention has turned to Strategy, formerly known as MicroStrategy. The company holds 717,131 bitcoins at an average acquisition price of $76,027, resulting in substantial unrealized losses at current market levels. This situation has reignited debate among investors about concentration risk and the exposure of corporate balance sheets to cryptocurrency volatility.
From a technical standpoint, the $60,000 to $65,000 range is emerging as a critical medium-term support zone. A sustained break below this area could accelerate selling pressure and open the door to price levels not seen since the early stages of the previous bull cycle. On the other hand, stabilization combined with an improving macroeconomic outlook could allow for a technical rebound toward the $70,000 to $72,000 range.
In the near term, market direction is likely to be driven by incoming economic data and the tone set by the Federal Reserve. The combination of reduced liquidity, geopolitical sensitivities, and shifting interest rate expectations suggests that volatility may remain elevated, particularly if inflation or growth figures surprise to the upside.
Overall, Bitcoin is navigating a deep adjustment amid macroeconomic caution, geopolitical tension, and uncertainty over future monetary policy. How U.S. data evolve and how the Federal Reserve signals its next steps are expected to play a decisive role in determining whether the cryptocurrency establishes a stable floor or whether the correction continues.