Bitcoin slides gain as investors lose appetite for crypto

Bitcoin dropped more than 5% on Monday during European trading, continuing a decline that began shortly after the cryptocurrency set new records earlier this quarter. The move showed that buying interest seen earlier in the year has cooled, with several days of selling pushing prices to their lowest level in weeks.

The slide was not limited to Bitcoin. Major cryptocurrencies including Ethereum and Solana also lost more than 5% on the day. Their declines followed a similar pattern, showing that weakness is widespread across the digital asset market rather than tied to a single project or technology issue.

The downturn comes as borrowing costs remain high in major economies. Higher interest rates increase the cost of accessing money and make low-yield and high-volatility investments less attractive. With few signs of interest rate cuts soon, some investors have reduced positions in speculative assets.

Data from large trading platforms shows fewer large purchases compared with earlier rallies this year. Trading activity involving leveraged positions — where investors borrow funds to increase exposure — has declined recently, and some positions have been automatically closed during price drops, adding to the downward pressure.

Stock markets have also been weak in recent sessions, especially in sectors tied to technology spending. When major tech shares fall, cryptocurrencies often move in the same direction because many traders treat them as similar types of investments — high-growth but high-risk.

Bitcoin is still higher than where it started the year, but recent moves highlight how quickly prices can shift when demand slows. Investors are watching economic updates closely, as interest rate expectations have been one of the strongest influences on digital asset prices this year.

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