The cryptocurrency market experienced a sharp decline during Asian trading hours, with Bitcoin dropping below $80,000 as escalating trade war fears rattled global markets.
Market Turmoil Triggers Crypto Crash
- Bitcoin fell approximately 7% from Sunday evening to a low of $77,077
- Ethereum plunged from $1,800** to **$1,538, hitting its lowest level since October 2023
- Total crypto market liquidations reached $758 million in 24 hours (highest in 6 weeks)
The sell-off followed former U.S. President Trump's announcement of reciprocal tariffs on trading partners, which erased over $5 trillion from U.S. stock market value. Asian markets reacted with:
- U.S. index futures extending losses
- Safe-haven demand boosting the Japanese yen
Key Support Levels and Market Sentiment
Sean McNulty, FalconX's APAC Derivatives Lead, noted:
"Options markets indicate rising sell pressure—bearish put demand has surged noticeably."
Critical support levels to watch:
| Cryptocurrency | Support Level |
|----------------|---------------|
| Bitcoin | $75,000 |
| Ethereum | $1,500 |
Correlation With Traditional Markets
While cryptocurrencies initially showed resilience during earlier trade tensions, Monday's crash suggests:
- Digital assets may not decouple from tech stock declines
- Heightened correlation with Nasdaq 100 (as seen during COVID-19 volatility)
Caladan, a crypto market maker, observed:
"Cryptos often lead risk asset movements. Expect deeper corrections when U.S. markets open."
👉 Track real-time Bitcoin price movements
FAQ: Understanding the Crypto Market Drop
Q: Why did Bitcoin crash suddenly?
A: Combined impact of trade war fears, stock market losses, and leveraged long position liquidations.
Q: Is this a good time to buy the dip?
A: Monitor $75,000 Bitcoin support—breaching this level could trigger further downside.
Q: How long might volatility last?
A: Until macroeconomic uncertainty clears, particularly regarding trade policies and equity market stability.
👉 Learn crypto trading strategies for volatile markets
Market analysis suggests caution—cryptocurrencies remain sensitive to global risk appetite shifts.
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