Crypto Market Falls Sharply: Bitcoin and Ether Lost Their Shine
The crypto market has witnessed another major fall, with investors selling their holdings over the weekend. During trading hours in Asia, especially in Singapore till Monday morning, major cryptocurrencies such as Bitcoin and Ether saw a tremendous fall in their value. This fall reflects the overall risk-off sentiment of the global financial markets.
How far did Bitcoin and Ether fall?
Bitcoin, the world’s largest and first cryptocurrency, lost almost 7% of its value from Sunday night to Monday morning. During this time, Bitcoin touched a low of $77,077 as per Singapore time. While the other largest cryptocurrency Ether (Ethereum) touched an intra-day low of $1,538, which was the lowest since October 2023.
Although, both cryptocurrencies later recovered some losses, but the fall left investor sentiment quite shaken. This sudden fall shows how the market is still being influenced by global economic news and geopolitical developments.
Impact of Global Markets
A major reason behind this fall is the new trade policies and tariffs of US President Donald Trump. Trump’s aggressive tariffs have wiped trillions of dollars off US equities. That’s why US equity-index futures also fell, while the Japanese yen surged sharply — a clear signal that investors are now fleeing to safe-haven assets.
What do experts say?
Charlie Sherry, head of finance at BTC Markets and a well-known crypto analyst, wrote in his research note, “For a moment it seemed that the crypto market would remain stable, but the 24/7 nature of the crypto market says otherwise. When people woke up on Sunday, they started selling with full enthusiasm.”
Will the decline continue?
According to data from Coinglass, $758 million worth of bullish crypto positions have been liquidated in the past 24 hours — the most in nearly a week.
Sean McNulty, head of APAC derivatives at FalconX, said options market indicators show selling pressure could increase even further. He said, “Put options skew has increased significantly, which indicates that people are now hedging more to avoid the downside.”
He also added that the next key support level for Bitcoin is $75,000 and for Ether the critical zone is $1,500. If prices fall below these levels, the market could witness further panic selling.
Conclusion
This is a challenging time for crypto investors. Global financial uncertainty, US policies and market sentiments — all together are shaking the crypto market. While some people are looking at this dip as a buying opportunity, investors have become more cautious.
Now it remains to be seen whether Bitcoin and Ether are able to hold on to their key support levels or the series of decline will continue for longer..