Cryptocurrencies sold off sharply heading into the week in Asia, underscoring a clear risk-off sentiment across markets.
Bitcoin shed about 7% of its value from Sunday night through to Monday morning in Singapore to reach a low point of US$77,077 ($104,042.77).
Second-ranked token Ether plummeted to US$1,538, an intra-day low not seen since October 2023. Both Bitcoin and Ether later pared losses.
The slide comes as US President Donald Trump dug in on sweeping tariffs that have already wiped trillions in value from US equities. US equity index futures slumped and the yen surged in a sign of deepening turmoil throughout financial markets.
“For a moment, it seemed as though crypto might hold steady, but with the 24/7 nature of crypto markets, investors woke up on Sunday in full ‘sell mode,’” said Charlie Sherry, head of finance and crypto analyst at BTC Markets in a research note.
Coinglass data show about US$758 million worth of bullish crypto wagers were liquidated in the past 24 hours, the most in nearly six weeks.
Options markets suggest the selling pressure may continue “with the skew for puts picking up considerably”, said Sean McNulty, head of APAC derivatives at digital-asset prime brokerage FalconX. Key support levels for Bitcoin and Ether are US$75,000 and US$1,500, respectively, he added.
Digital assets had shown some resistance to the panic that roiled markets after Trump first unveiled his tariff program, hinting at a possible breakaway from the gravitational pull of technology stocks.
See also: SGX to list open-ended Bitcoin futures contracts
Monday’s sell-off suggests the high positive correlation between crypto and the Nasdaq 100 that has prevailed since the Covid-19 pandemic may persist.
“Crypto is typically a leading indicator for risk assets,” said Julia Zhou, COO at crypto market maker Caladan. “Expect sharper corrections once US equities open today.”
Chart: Bloomberg
