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, a rebound toward $80,000+ is possible.
✅ Fed rate cuts later this year could reignite crypto momentum.
Bear Case:
⚠️ A break below $75,000 may trigger a fall toward $70,000.
⚠️ More tariff announcements could extend the selloff.
Expert Take:
“If Bitcoin loses $75K, we could see a sharp drop to $70K—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), $78,000 (resistance)
ETH: $1,500 (support), $1,600 (resistance)
Stay alert—volatility isn’t over yet.
