Panic Hits Crypto Markets as Bitcoin Crashes Below Key Level – Here is What You Need to Know

Cryptocurrency markets came under intense pressure in early trading hours on Monday, triggering a wave of selloffs across major digital assets. Multiple fears surrounding U.S. trade policy caused the market downturn because President Donald Trump reinforced his support for extensive tariff measures during the weekend.

The world’s leading cryptocurrency, Bitcoin, suffered a market value decrease of approximately 7 percent compared to its Sunday trading levels. The market price briefly reached $76,900 before embarking on a slight rebound following its initial dip. The market value of Ether, the second-largest crypto asset, sank to $1,540 and has maintained this position since October 2023.

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Based on Charlie Sherry’s observations at BTC Markets, crypto often shows initial market reactions to global changes in risk perception because it operates continuously throughout the day. During geopolitical trouble, investors depend on crypto markets to gauge their collective sentiment, making these markets primary indicators of market sentiment.

Derivatives Liquidations Spike as Traders Rush to Cut Risk

Trader position contracts indicated widespread trouble in trading markets beyond spot market value losses. According to Coinglass, long position trades worth over $758 million suffered liquidation during the 24-hour period. The total number of long liquidations in the market reached a near six-week high.

According to options data analysis, market participants heavily acquired downside protection options. Deribit data revealed rising recorded interest for Bitcoin put options holding the $70,000 strike price, according to a Bloomberg article. The demand for puts at FalconX increased rapidly, according to the assessment of Senior APAC Derivatives Head Sean McNulty, which indicates institutional traders are showing heightened concern.

The price decline within the crypto market matched the weakness in U.S. equity futures because these assets remain strongly interconnected. Julia Zhou, from Caladan’s Chief Operating Officer position, maintained that market independence between digital assets and risk assets proved elusive since crypto has maintained close interconnections between them.

Attention now turns to crucial support zones that could dictate the market’s next direction. McNulty stated that Bitcoin needs to stay above $75,000 and Ether must stay above $1,500, or both tokens risk additional price decreases through the start of the new trading week.

Conclusion

Rapid cryptographic market devaluations prove the sector’s sensitivity to worldwide economic system fluctuations. Market participants expect increasing volatility because technical support levels face pressure, and liquidations continue to grow.

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