The sharp decline follows the liquidation of nearly $900 million in bullish crypto positions within 24 hours
Bitcoin plunged below $75,000 early Monday, shedding as much as 5.3%, as sweeping U.S. tariffs announced by President Donald Trump triggered a global flight from risk assets.
The selloff wiped out nearly all of crypto’s post-election gains, with total market capitalization dropping 12% to $2.47 trillion, according to CoinGecko.
“For a moment, it seemed as though crypto might hold steady, but with the 24/7 nature of crypto markets, investors woke up on Sunday in full ‘sell mode,’” said Charlie Sherry, head of finance at crypto exchange BTC Markets, in emailed comments to Forbes.
Ether dropped to $1,418, its lowest level since March 2023, while key altcoins such as XRP, Solana, and Dogecoin each fell over 15% in 24 hours.
The retreat mirrored declines in U.S. equity futures and Asian stock markets, with safe-haven assets like gold and the Japanese yen rising sharply.
Liquidations near six-week high as traders exit longs
Roughly $868 million in bullish crypto positions were liquidated over 24 hours, according to Coinglass, marking the steepest wave of forced selling since February.
The rapid decline in leveraged bets points to growing caution among retail and institutional participants alike.
Options activity suggests investors are hedging for further downside. “The skew for puts is picking up considerably,” said Sean McNulty, head of APAC derivatives at prime brokerage FalconX, as reported by Bloomberg.
He noted that open interest for Bitcoin put options with a $70,000 strike price has now surpassed all other levels, reflecting rising demand for downside protection.
Despite early hopes that crypto might decouple from equities in the face of U.S. economic shocks, the sharp correlation between Bitcoin and the Nasdaq 100 appears intact.
“Crypto is typically a leading indicator for risk assets,” Julia Zhou, COO at crypto market maker Caladan, told Bloomberg. “Expect sharper corrections once U.S. equities open today.”
Trump’s tariff offensive fuels global risk repricing
The selloff was triggered by Trump’s “Liberation Day” tariff initiative, which imposes a 10% baseline tariff on all imports and additional reciprocal surcharges on foreign trade partners.
The move sparked renewed fears over inflation, supply chain instability, and corporate earnings pressure.
Digital assets initially showed resilience following Trump’s election victory, buoyed by regulatory optimism and ETF inflows.
However, Monday’s pullback erased much of that momentum, pushing Bitcoin back toward its pre-election support level near $72,000.
“The next key support lies around $72,000, which was the pre-election high,” said BTC Markets’ Sherry. He added that a reversal may require either a policy shift from Trump or emergency intervention from the Federal Reserve.
