(MENAFN) Bitcoin dropped more than 5.2% on Monday, extending its recent downtrend amid concerns over large-scale liquidations. The cryptocurrency was trading at $86,100 at 0710GMT, following a fall below the $90,000 mark last month—the first since April.

CoinMarketCap data showed that the total value of the global cryptocurrency market, including Bitcoin, fell 5% in the last 24 hours to $2.93 trillion. Bitcoin’s market capitalization dropped 5.3% to $1.71 trillion, while daily trading volume surged 65% to $60.4 billion. Bitcoin’s weekly loss reached 22%, and its year-to-date gains have been erased, with a 7.8% decline so far this year. Ethereum, the second-largest cryptocurrency, fell 5.8% to $2,825.

The sell-off follows Bitcoin’s sharp monthly losses at the end of November and persists despite improving confidence in US monetary policy. Expectations of a Federal Reserve rate cut in December have risen due to weaker US GDP indicators and easing inflation pressures.

Adding to market uncertainty, US President Donald Trump indicated over the weekend that he knows who he would choose as the next Federal Reserve chair, though the name has not been revealed. This fueled speculation, including the possibility of former White House economic adviser Kevin Hassett, known for his dovish stance on monetary policy.

Recent waves of liquidations over the past weeks also contributed to the sharp decline in cryptocurrency prices.

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