Crypto Market Plummets 6-12% Amid Tariff War, $900M Liquidated

The crypto market experienced a significant downturn as global markets reacted to the escalating tariff war initiated by former U.S. President Donald Trump. Major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) saw their prices plummet by 6-12% within a single day, resulting in over $900 million in liquidations over the past 24 hours. This sudden crash has led analysts to question Bitcoin's status as a "Digital Gold" and its effectiveness as a hedge against market volatility.

On Monday morning, the crypto market faced heavy volatility as risk-ON assets experienced significant fluctuations. This turmoil was exacerbated by the early trading hours in major markets, which saw their indexes crash by 10%, sending global markets into a state of chaos. Bitcoin's price dropped by 6.9% within the last 24 hours, trading at a crucial support level of $77,500. The daily trading volumes for BTC surged by 220% to over $44 billion, with 24-hour liquidations reaching $322 million. According to technical analysis, $77,500 is a critical support level for BTC. If this level fails to hold, further corrections could be more severe.

Despite Bitcoin's resilience to the Dow Jones crash the previous week, it still experienced a 7% decline today. However, it performed better than Asian indices, which were down by 9-10%. In contrast, precious metals like gold and silver saw upward trajectories, with gold prices rising by $80 earlier in the day. Peter Schiff, a prominent critic of cryptocurrencies, commented on the situation, stating that crypto markets were finally starting to crack. He noted that Ether had fallen to its lowest level since October 2023, down 65% from its peak, and Bitcoin had traded below $81,000, taking out last week’s low. He warned that it could be a long day for those trapped in Bitcoin ETFs.

As the tariff war increases the odds of a U.S. recession, debates over Bitcoin's "digital gold" status have intensified. Long-term players remain bullish about BTC despite the volatility. Hunter Horsley, the CEO of Bitwise Investments, noted that as nations trust each other less and corporations face more difficulties doing business, a global, digital, apolitical store of value controlled by no nation looks increasingly valuable. He emphasized that Bitcoin's place in the world has never been more valuable.

The altcoin market correction has extended further, with Ethereum (ETH) price crashing by 13.5% to $1,550. This drop has extended ETH's 2025 losses to over 53%, leaving investors in a state of shock. On-chain data from Spot On Chain indicates that whales are buying ETH during the dip. For instance, the mystery group "7 Siblings" spent $42.66 million to buy 25,100 ETH at around $1,700 and then supplied all tokens to Aave. Another whale, "0x709," borrowed 8.25 million DAI from Spark to buy 5,227.3 ETH at around $1,578.

Other altcoins have also faced significant drops. XRP price is down 14.5%, falling below the crucial $2 support, with analysts predicting a further crash to $0.65. Solana price is down by 14% to $102 levels, while Dogecoin price has plummeted by 16% to $0.143 levels. The overall market sentiment remains bearish, with investors bracing for further volatility as the global economic landscape continues to shift.