Crypto Market Plummets 10% as Bitcoin Drops Below $77,000
2min read Bitcoin struggled to maintain its value below $77,000 in early Monday trading, as the broader crypto market experienced a significant downturn. This decline extended across various altcoins, with major cryptocurrencies such as Ether, XRP, and Solana suffering double-digit losses ahead of the US market opening.
Ask Aime: What led to the significant downturn in the crypto market, and how will it affect Bitcoin's performance today?
The crypto market selloff intensified, with major altcoins posting severe losses. Ether dropped 17% to trade under $1,400, levels not seen since March 2023. The sharp price drop forced the liquidation of an Ethereum whale, who suffered losses surpassing $100 million. XRP declined 16% to $1.7, with its market cap falling to $102 million and losing its position among the top three crypto assets. Solana and Dogecoin each fell 16%, while Cardano dropped 15%. Binance Coin and tron showed more resilience, declining 8% and 6% respectively. The total crypto market capitalization decreased by over 10% to $2.5 trillion, representing approximately $100 billion in lost value within 10 hours.
The decline in the crypto market coincided with sharp falls on Asian stock markets. The benchmark index plunged nearly 10%, its largest single-day drop since 1990. Shares of major companies tumbled nearly 10%, triggering automatic trading halts. In response, the Financial Supervisory Commission introduced temporary short-selling restrictions in an effort to stabilize the market.
The downturn in the crypto market comes amidst a broader financial landscape that has been shaken by recent macroeconomic events, including the implementation of sweeping reciprocal tariffs by the US President. These tariffs have triggered a wave of panic across global financial markets, affecting not only stocks and currencies but also the crypto market.
The decline in Bitcoin's value has had a ripple effect on the broader crypto market, with high-beta tokens like pi Coin being particularly hard hit. Pi Coin, which had once been viewed as a potential investment among altcoins, has been in a prolonged downtrend since its all-time high. The recent tariff announcement has exacerbated this downtrend, with Pi Coin struggling to find support amidst a market-wide sell-off. Technical indicators suggest that there is no clear bottom yet for Pi Coin, and the declining volume shows a lack of buying interest.
The interconnectedness of the crypto market with the broader financial system is evident in the sharp reaction of Bitcoin and other cryptocurrencies to macroeconomic news. This downturn has magnified existing vulnerabilities for tokens like Pi Coin, which lack the liquidity and adoption strength of major assets. The current bearish phase for Pi Coin is characterized by failed breakouts and increasingly bearish technical signals, with the price structure suggesting fading bullish momentum and increasing vulnerability to further downside.
The broader macro environment, shaken by tariff shocks and risk-off sentiment, has stripped away the usual resilience seen in crypto. This has pulled even Bitcoin into a downtrend, making recovery harder for tokens like Pi Coin, which lack strong institutional backing or deep liquidity. Until macro conditions stabilize and technicals reset, Pi Coin remains at risk of further losses. Any bounce in the market may prove short-lived in a landscape increasingly driven by external forces and fading risk appetite.
