(Bloomberg) — Cryptocurrencies wiped out almost all their gains since Donald Trump’s election win in early November as fallout from the US president’s tariff onslaught sparked heavy selling in an asset class he’s vowed to champion.
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Bitcoin tumbled below $75,000 on Monday for the first time since Nov. 7, dropping as much as 5.3%. The total market capitalization of all cryptocurrencies fell about 12% to $2.47 trillion, roughly where it stood when Trump sealed his victory, according to CoinGecko data. Ether dropped to the lowest since March 2023.
The slide comes as Trump dug in on sweeping tariffs that have already wiped trillions in value from global equities, and dashed hopes that crypto would withstand the pressure better than other assets. Asian stocks and US equity-index futures slumped on Monday 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 $868 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 $75,000 and $1,500, respectively, he added.
Open interest — or the total number of outstanding contracts — for put options with a strike price of $70,000 is currently higher than for any other expiry, according to data from derivatives exchange Deribit. That highlights a growing demand for further downside protection.
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. Monday’s selloff indicates that 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.”
