Bitcoin and Ethereum fell sharply on Monday as the broader cryptocurrency sell-off returned, unsettling traders at the start of a new month. Bitcoin dropped about 5.3% to trade near $86,553 at 8:18 a.m. in London, while Ethereum slid 6.4% to around $2,836.
Solana weakened more than 7% to about $127, extending losses across major altcoins. Dogecoin also declined roughly 8%, reflecting renewed pressure across the digital asset market.
The downturn followed a warning from the People’s Bank of China, which said over the weekend that it was cautioning against “illegal activities relating to digital currencies.” That statement weighed on Hong Kong-listed digital asset firms, which fell during Monday’s session.
The regulatory signal deepened selling momentum already fueled by global caution. Investors are reacting to a wider risk-off mood, which has gripped markets at the start of the month.
Uncertainty over a possible U.S. interest rate cut is heightening anxiety, making traders more cautious about holding volatile digital assets. At the same time, concerns about overheated AI-related valuations added to volatility after a choppy November.
This combination created a perfect storm for cryptocurrencies, which tend to react strongly when investor confidence weakens. The renewed pressure suggests crypto markets may remain unstable until macro signals turn clearer.