(Bloomberg) – Since winning the Donald Trump election in early November, cryptocurrency has wiped out almost all profits.
Most of them read from Bloomberg
Bitcoin fell below $75,000 on Monday for the first time since November 7th, down 5.3%. According to Coingecko data, the total market capitalization of all cryptocurrencies fell by about 12% to $2.47 trillion, where it stood when Trump sealed his victory. Ether has fallen to its lowest since March 2023.
The slide comes as Trump digs in swept tariffs that have already wiped out trillions of value from global stocks. Asian stocks and US stock index futures fell on Monday, with the yen surged with signs of deepening disruption across financial markets.
“For a while, the crypto market seemed stable, but the 24/7 nature of the crypto market made investors woke up in full ‘sales mode’ on Sunday,” said Charlie Shelley, head of financial and crypto analysts for the BTC market, as the financial director of research notes.
Coinglass data shows that bullish crypto bets worth around $868 million have been liquidated in the last 24 hours, most liquidated in nearly six weeks.
The options market suggests that sales pressure could continue “with a substantial pickup skew,” Sean McNulty, head of APAC Derivatives at digital asset prime broker Falconx. The main support levels for Bitcoin and Ether are $75,000 and $1,500 respectively.
According to data from Derivatives Exchange Deribit, the total number of open interest – or issued contracts on Put Options, with a strike price of $70,000, is currently higher than any other expiration date. This underscores the growing demand for further negative side protection.
The digital assets have shown some resistance to the panic that markets held the market after Trump first unveiled his tariff program, suggesting a possible breakaway from pulling the gravity of technology stocks. The sale on Monday shows that a high positive correlation between Crypto and the Nasdaq 100 could last the Covid-19 pandemic.
“Crypto is usually a key indicator of risk assets,” said Julia Zhou, COO of Crypto Market Maker Caladan. “If US stocks open today, look forward to a more sharp revision.”