The crypto market stayed under pressure on Monday, Feb. 9, as a recent rebound lost momentum. Investor caution grew after reports that China asked its banks to reduce exposure to U.S. government debt.
Bitcoin fell below the key $70,000 support level during the session. The total crypto market value dropped about 2.75% in the last 24 hours, reflecting weak risk appetite across digital assets.
Market stress was also visible in sentiment data. The Crypto Fear and Greed Index remained deep in the extreme fear zone. More than $356 million worth of leveraged positions were liquidated as prices moved lower.
The pullback followed losses in other risk assets. Futures linked to the Dow Jones and Nasdaq 100 also declined, giving back part of Friday’s gains.
According to reports, Chinese regulators asked banks and financial firms to lower their holdings of U.S. Treasuries. Officials framed the move as a risk diversification effort rather than a direct response to political tensions.
China has been reducing its U.S. debt exposure for years. Its Treasury holdings have fallen to about $682 billion, down from more than $1 trillion in the past. This trend has raised concerns about long-term demand for U.S. bonds.
Continued selling of Treasuries has pushed long-term yields higher. The 30-year U.S. bond yield climbed to around 4.9%, while gold prices surged above $5,000 as investors searched for safer assets.
Crypto market data also shows weakening activity. Trading volume fell 12% to about $100 billion, while futures open interest dropped to $96 billion. Analysts say falling leverage suggests continued deleveraging, which often puts further pressure on crypto prices.
