A significant sell-off in the cryptocurrency market took a severe turn during the European morning hours on Monday, as Bitcoin fell below the $75,000 threshold, amplifying losses on major tokens by nearly 20%.
Tokens such as XRP, Solana (SOL), and Dogecoin (DOGE) experienced declines of over 5% in the hours leading up to the European open, wiping out tens of billions in market capitalization, triggered by a wave of macroeconomic uncertainties and aggressive liquidations totaling close to $1 billion.
The overall CoinDesk 20 (CD20) index, which monitors the largest tokens, fell by 12%, reflecting a pervasive risk-off sentiment that has taken hold of the sector.
XRP and SOL were at the forefront of the downturn, each plummeting more than 20% within the past 24 hours and falling below crucial support levels. XRP, currently trading at $1.70, has dipped beneath its significant 200-day moving average—an important technical support metric—raising concerns about further declines toward $1.75.
Meanwhile, SOL has dipped below $100, breaking past its 50-day moving average, representing a 64% decrease from its all-time high. DOGE, the popular meme coin, also suffered, falling 20% to $0.13, according to a CoinDesk analysis shared earlier on Monday.
Recent 25% tariffs imposed by President Donald Trump on imports from Canada and Mexico, along with a doubled 20% tariff on China, have prompted retaliatory rhetoric.
China is considering stimulus measures to address these tariffs, further heightening market anxieties, as reported. Consequently, investors are moving away from riskier assets in favor of safe havens like gold and the Japanese yen.
Traders are anticipating that the market decline will persist through the Asian trading day as the U.S. market approaches opening.
“Historically, the crypto markets tend to lead the stock markets, especially over weekends, and this morning’s declines in Asia seem to validate that idea,” stated Jeff Mei, COO at BTSE, in a message to CoinDesk via Telegram. “We anticipate that crypto markets will continue to decline once U.S. markets open.”
“The potential for recovery hinges on whether major nations can secure short-term tariff relief or agreements this week. So far, countries like Vietnam, Cambodia, and Taiwan have agreed to lower their tariffs and/or enhance U.S. investments in return for concessions, but a significant trading partner such as Japan or China would be needed to rebuild market confidence,” Mei added.
Augustine Fan, head of insights at SignalPlus, characterized the current market behavior as indicative of a bear market.
“All signs point to macro markets entering a ‘bear market’ phase, where rallies are seen as opportunities to sell, and investors must face this new reality against their long-term investments,” Fan communicated in a Telegram message. “The market is likely to continue to frustrate and undermine investor confidence for an extended period.”
“In the long run, charts might suggest that BTC has broken out compared to global equities and is due to catch up with spot gold, but the catalysts seem to be fleeting at present, making risk management (i.e., lower prices) the primary focus until global markets stabilize,” concluded Fan.
