The cryptocurrency market experienced a significant downturn on Monday morning across Europe, as bitcoin dipped below the $75,000 mark, pushing major tokens down by almost 20%.
Notably, XRP, solana (SOL), and dogecoin (DOGE) each saw declines exceeding 5% just before the European markets opened, resulting in the loss of tens of billions in market capitalization. This drop was largely fueled by ongoing macroeconomic uncertainty and substantial liquidations approaching $1 billion.
The overall CoinDesk 20 (CD20) index, representing the largest cryptocurrencies, fell by 12%, indicating a pervasive risk-averse attitude within the market.
XRP and SOL were among the most affected, each plummeting over 20% within the last day, breaking important support levels. XRP, now priced at $1.70, has fallen below its significant 200-day moving average—often seen as a crucial technical support point—raising concerns of a further drop towards $1.75.
Meanwhile, SOL has dropped below $100, slipping past its 50-day moving average and reflecting a 64% decrease from its peak. DOGE, the popular meme cryptocurrency, also took a hit, falling 20% to $0.13, as highlighted in an earlier analysis.
Recent tariffs, including a 25% tax on imports from Canada and Mexico and a 20% increase on goods from China, set off retaliatory threats that have compounded fears in the marketplace.
In response, China is reportedly considering stimulating its economy to counteract these tariffs, which has added to market anxiety. Investors are moving away from risk assets in search of safer havens, such as gold and currencies like the Japanese yen and Australian dollar.
Traders anticipate that this bearish trend could persist throughout the Asian trading session ahead of the U.S. market opening.
“Typically, the cryptocurrency markets respond ahead of stock markets over the weekend, and the current declines in Asia seem to support that pattern,” stated Jeff Mei, COO at BTSE, via a Telegram message. “We foresee cryptocurrency markets falling further at the opening of U.S. markets.”
“Whether recovery is possible hinges on the ability of major economies to negotiate short-term tariff reprieves or agreements this week. So far, countries like Vietnam, Cambodia, and Taiwan have committed to reducing tariffs or boosting U.S. investments in exchange for concessions. However, a significant trading partner like Japan or China would need to follow suit to rebuild confidence in the market,” Mei added.
Augustine Fan, head of insights at SignalPlus, noted that the current market movements indicate overall bearish trends.
“All indicators point to macro markets being in a ‘bear market’ phase, suggesting that any rallies are likely to be sold off, forcing investors to adapt to this new reality,” Fan remarked in a Telegram message. “The market may continue to frustrate and undermine investor confidence for a while longer.”
“In the long term, technical charts might suggest that BTC is overdue to catch up with spot gold, having broken away from global equities, yet the drivers for such movement seem scarce, and risk management—favoring lower prices—will likely take precedence until there is more stability globally,” Fan concluded.