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Bitcoin has fallen below $79,000 on Monday, raising concerns among analysts who believe the downturn may not be over.
With XRP, Ethereum and other altcoins also under pressure, experts suggest that market expectations have been reset, and further corrections remain a possibility.
Bitcoin is currently trading at $78,650, down 4.5% in the past 24 hours, while Ethereum has dropped 4.7% to $1,925.
Among major altcoins, XRP and BNB have declined 2% each, Solana has fallen 6%, and Dogecoin is down 5%.
The crypto market has seen $637.35 million in liquidations over the past day, with long positions accounting for $460.19 million, according to data from Coinglass.
The decline follows Bitcoin's peak at $109,000 in January, marking a nearly 25% drop that has erased most of its previous gains.
What Experts Are Saying: According to James Toledano, Chief Operating Officer of Unity Wallet, the pullback is largely due to unrealistic expectations surrounding the strategic Bitcoin reserve.
"The biggest letdown has been the U.S. Bitcoin Strategic Reserve, which turned out to be nothing more than a repackaging of seized FBI assets—around 200,000 BTC, just 1% of Bitcoin's market cap—placed under the control of the Federal Reserve," Toledano told Benzinga.
Macroeconomic factors are also weighing on the market.
Rising inflation, shifting Federal Reserve policy expectations, and the recent U.S. tariff policy have prompted institutional investors to reduce exposure to risk assets.
Toledano noted that the U.S. economy has contracted by 2.5% following tariff implementation, adding to concerns of an economic slowdown.
Despite the current downturn, some analysts argue that crypto remains in a long-term growth phase.
Speaking with Benzinga, Marcin Kazmierczak, Co-founder and COO of RedStone, said he believes institutional interest remains strong but acknowledges that regulatory changes take time to impact prices.
"Fundamentals for crypto are strong: incoming U.S. reserves, new applications in DeFi, both stablecoins and RWAs are at all-time highs," Kazmierczak said. "Legislation and the Strategic Bitcoin Reserve need time to be properly implemented and reflected in the market."$BTC
