Bitcoin Crashes Below Critical Support – Is a Crypto Market Collapse Coming?

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