- Escalating global tensions and tariff wars, particularly U.S. President Trump’s trade policies, triggered a sharp Bitcoin sell-off in Asian markets, leading to a near $1 billion cryptocurrency market crash
- Altcoins like Ethereum and Solana have experienced substantial drops, while traditional safe-haven assets like gold saw a rally.
The crypto market was hit hard, with Bitcoin plunging to 76,000 and altcoins like Ethereum (ETH)and Solana(SOL), dropping over 18% and 17% respectively, raising questions about Bitcoin’s role as a digital gold hedge.
Market Overview
The market selloff began in Asia, with major indexes in China, Japan, and Taiwan falling 10% and triggering circuit breakers.
The panic quickly spread to crypto, where nearly $1 billion in positions were wiped out in just 24 hours. Bitcoin, which had stayed strong during last week’s Dow Jones decline, dropped 8.2% and is hovering near a crucial support level at $76,000. Analysts caution that even sharper losses could be ahead If it falls below this point.
Some analysts think the crypto market might be heading into a longer bearish phase, where prices stay low for an extended period. According to Ki Young Ju from CryptoQuant, on-chain data shows that the Realized Cap, which reflects the total value of coins based on the price when they were last moved, is increasing.
At the same time, the overall market cap is staying flat. This usually means that investors are holding coins they bought at higher prices, but there’s not enough new buying to push prices up, which is often a bearish signal.
Bitcoin is also approaching a key level called the Weekly 50 EMA, which usually acts as a support during bull markets. But because of what’s happening in the market currently, people are wondering if Bitcoin is still in a bull market at all. Even though it used to do better than stocks, the recent drop makes it look like things could be bearish for a while.
The crypto world is also worried about a “Bloody Monday,” like the big stock market crash in 1987. This worry comes from the current trade war after President Trump put tariffs on goods from the European Union. Because of this, and the possibility of the EU fighting back, investors are expecting a rough start to the week.
Analysts like Charles Gasparino and Bill Ackman are concerned. Gasparino thinks today could be really bad for the markets, and Ackman is warning that the tariff issues could lead to a big economic problem.
But, by placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital,
said Ackman.
The price of Bitcoin going down has also hurt other cryptocurrencies. Ethereum is down 18% trading at $1,493, with a trading volume of $44B up 500%. Solana is down 17%, trading at $101.9, with a trading volume of $6.6B, up 300%. XRP is down 14.71%, trading at $1.78, with a trading volume of $10B, up 380%. DOGE is trading at 0.1399, down 14%, with a trading volume of $2.4B, up 311%.
Gold Shines as Bitcoin Plummets
While crypto floundered, traditional safe havens rallied. Gold jumped $80, and silver climbed, $30, fueling criticism from sceptics like Peter Schiff. He also went ahead and tweeted,
After a delayed reaction on Friday, crypto is finally starting to crack. Ether has already fallen to its lowest level since Oct. 2023, down 65% from its peak, and Bitcoin just traded below 81K, taking out last week’s low. It could be a long day for those trapped in Bitcoin ETFs.
However, long-term Bitcoin advocates remain unfazed. Bitwise CEO Hunter Horsley argued that geopolitical distrust strengthens Bitcoin’s case. He stated,
As nations trust each other less. As corporations have more difficulty doing business. A global, digital, apolitical store of value — controlled by no nation — looks increasingly differentiated. Bitcoin’s place in the world has never been more valuable
What’s Next for Crypto?
With Trump’s tariff policies increasing recession risks, market uncertainty is likely to persist. Bitcoin’s ability to hold $76,000 will be crucial in determining short-term sentiment. If it rebounds, confidence may return; if not, analysts predict a slide toward $70K. Overall, Bitcoin’s decline suggests altcoins could face more pain before recovery.