The cryptocurrency market was rocked Monday as Bitcoin plunged below $75,000, leading a broad-based sell-off across digital assets. But by 2 p.m. ET, BTC had bounced back to $78,000, as dip-buyers stepped in and traders awaited updates on global trade negotiations.
The rebound came after nearly $1 billion in liquidations and widespread losses earlier in the day, spurred by mounting macroeconomic uncertainty and aggressive new tariffs imposed by President Donald Trump on key trading partners.
Crypto Carnage: What Happened
- Bitcoin (BTC) fell below $75,000 before recovering to $78,000 by mid-afternoon.
- XRP and Solana (SOL) both plunged over 20% in 24 hours, breaching major support levels.
- Dogecoin (DOGE) sank 20% to $0.13.
- The CoinDesk 20 (CD20) index dropped 12%, signaling a sweeping risk-off sentiment.
- Market losses erased tens of billions in crypto market cap before stabilizing.
What Caused the Bitcoin Sell-Off?
The sharp downturn was attributed to a combination of:
- New Trump tariffs: 25% on Canadian and Mexican imports, 20% on Chinese goods.
- Retaliation risks: China is reportedly considering early stimulus measures.
- Global economic fears: Investors are pulling out of risk assets amid rising uncertainty.
- Liquidation cascade: Nearly $1 billion in leveraged positions were force-closed across exchanges.
“This morning’s Asia market declines and crypto’s weekend lead on equities have only reinforced the risk-off mood,” said Jeff Mei, COO at BTSE.
Technical Trouble for Altcoins
- XRP tumbled below its 200-day moving average, now trading around $1.70.
- SOL dropped under $100, breaking its 50-day moving average and sitting 64% off its peak.
- DOGE, a favorite among meme coin traders, was hammered back to $0.13.
“This market is showing clear bear market behavior,” said Augustine Fan of SignalPlus. “Until macro conditions stabilize, we’ll keep seeing rallies sold and investor sentiment shaken.”
The Bigger Picture: Global Trade Tensions
President Trump’s tariff escalation has set off a ripple effect globally. In response:
- Vietnam, Cambodia, and Taiwan have pledged lower tariffs and more U.S. investment.
- Analysts warn that meaningful relief will only come if China or Japan strike temporary deals or secure exemptions.
“We’re not likely to see a true rebound until a major player steps in to de-escalate,” Mei noted.
Will Crypto Continue to Recover?
Despite Bitcoin’s afternoon recovery to $78,000, experts warn that volatility is far from over.
- Gold and the Japanese yen are gaining traction as safer bets.
- Markets remain on edge heading into the U.S. equities open and upcoming trade talks.
- Long-term trends still favor Bitcoin’s resilience, but short-term risk management is dominating strategies.
“Unless global markets stop melting down, crypto will stay under pressure,” said Fan.
Key Takeaways for Crypto Investors
- Expect continued volatility tied to U.S. trade policy and global economic shifts.
- Watch for potential market-moving announcements from China, Japan, or the White House.
- Bitcoin’s bounce to $78K offers temporary relief but doesn’t yet signal full recovery.
Stay tuned for more updates as geopolitical headlines continue to shake the crypto landscape.
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