According to a new report by Matrixport, Bitcoin experienced a significant decline this morning as long positions were liquidated.

Supported by the recent dovish statements from the Fed, BTC fell sharply in Monday’s trading amid the lack of bullish momentum.

The report suggests that the absence of a clear catalyst for the pullback points to long liquidation as the primary driver in a low liquidity environment.

Matrixport emphasized the importance of the $59,000 level, noting that Bitcoin falling below this level could cause more concerns in the market and deepen the declines even further. On the other hand, the decline occurred despite the recent inflow trend in US BTC ETFs tied to Bitcoin, revealing the market’s vulnerability to sudden sentiment changes.

Market participants are also wary of the possibility of the US government selling off its seized Bitcoin. Despite the current volatility, Bitcoin has surged 42% this year, reaching an all-time high of $73,798 in March. However, the long period below that peak has raised questions about the sustainability of the rally.

*This is not investment advice.