Bitcoin plunged to $77,133.4, near its 10-month low, following a weekend sell-off that saw the cryptocurrency dip to $75,766.8. This downturn was exacerbated by heavy liquidations in leveraged positions, wiping out roughly $111 billion from the total crypto market capitalization. The sell-off, which triggered widespread damage, saw about $1.6 billion in leveraged positions liquidated, forcing traders to unwind bullish bets rapidly.

The cryptocurrency's slide is linked to broader risk-off sentiment in global markets, particularly following U.S. President Donald Trump's nomination of Kevin Warsh as the next Federal Reserve chair. Warsh, known for his hawkish stance on inflation control, could imply tighter financial conditions, dampening appetite for speculative assets like cryptocurrencies. This development has prompted a reassessment of the outlook for interest rates and liquidity conditions, further weighing on the market.

Ethereum, the world's second-largest cryptocurrency, also faced significant declines, dropping 6.6% to $2,290.92, trading near seven-month lows. This downturn in major cryptocurrencies reflects the broader market sentiment and highlights the vulnerability of digital assets to macroeconomic factors and regulatory shifts. Investors are now eyeing the Federal Reserve's next moves, as any hints of tighter monetary policy could further pressure the already volatile crypto market.