Cryptocurrency markets plunged Monday as Bitcoin (BTC) dropped 7%, breaking below key levels amid growing fears over US trade policies. Here’s what’s happening—and where crypto could go next.
Why Crypto Markets Are Panicking
- Bitcoin fell to $76,900 before a slight rebound, down 7% from Sunday’s high.
- Ethereum (ETH) crashed to $1,540, its lowest since October 2023.
- $758M in long positions liquidated in 24 hours—the highest in six weeks.
Trigger: President Trump’s renewed push for aggressive tariffs spooked investors, causing a risk-off selloff in both crypto and stocks.
Key Factors Driving the Crypto Crash
1. Massive Liquidations Hit Traders
- Over $758M in long positions were wiped out (Coinglass data).
- Put options surged, with heavy demand for $70,000 Bitcoin puts (Deribit, FalconX).
- Institutions are hedging aggressively, signaling fear of further drops.
2. Bitcoin & Ethereum Testing Critical Support
- BTC must hold $75,000 to avoid a deeper correction.
- ETH needs to stay above $1,500—a break lower could trigger more selling.
3. Crypto Still Tied to Traditional Markets
- US stock futures also fell, proving crypto hasn’t decoupled from risk assets.
- Analysts warn: “Market independence is a myth”—macro fears impact crypto.
What’s Next for Bitcoin & Crypto?
Bull Case:
✅ If BTC reclaims 78,000∗∗,areboundtoward∗∗78,000∗∗,areboundtoward∗∗80,000+ is possible.
✅ Fed rate cuts later this year could reignite crypto momentum.
Bear Case:
⚠️ A break below 75,000∗∗maytriggera∗∗falltoward75,000∗∗maytriggera∗∗falltoward70,000.
⚠️ More tariff announcements could extend the selloff.
Expert Take:
“If Bitcoin loses 75K,wecouldseea∗∗sharpdropto75K,wecouldseea∗∗sharpdropto70K*—traders should watch this level closely.”*
— Sean McNulty, FalconX Senior APAC Derivatives Head
Should You Buy the Dip or Wait?
- Short-term traders: Wait for confirmation of a support bounce.
- Long-term holders: DCA (dollar-cost average) if BTC nears $70K.
- Institutional players: Increasing put options suggest caution.
Final Verdict: Crypto at a Crossroads
The next 48 hours are critical for Bitcoin and Ethereum. If support holds, a rebound is likely. But if selling pressure continues, we could see a deeper correction.
Key Levels to Watch:
- BTC: 75,000(support),75,000(support),78,000 (resistance)
- ETH: 1,500(support),1,500(support),1,600 (resistance)
Stay alert—volatility isn’t over yet.
