Crypto Market Sell-Off Intensifies as Major Tokens Drop 20%
A significant sell-off in the crypto market occurred on Monday morning, with bitcoin dropping below $75,000, resulting in nearly 20% losses across major tokens.
Key points include:
- XRP, SOL, and DOGE each fell over 5%, erasing tens of billions in market cap.
- The CoinDesk 20 (CD20) index decreased by 12%, reflecting widespread risk aversion in the sector.
- XRP dropped to $1.70, breaking below its 200-day moving average; further downside pressure toward $1.75 is anticipated.
- SOL traded under $100, marking a 64% decline from its all-time high.
- DOGE fell 20% to $0.13.
- Macroeconomic factors included President Trump’s tariffs on imports, prompting fears of retaliatory measures from China and leading investors to seek safe havens like gold and the Japanese yen.
- Traders expect ongoing declines through the Asian trading day ahead of U.S. market opening.
- Analysts indicated that current trends reflect bear market behavior, suggesting that rallies may be short-lived.
- Long-term prospects for BTC may hinge on larger economies securing tariff negotiations.
Overall, macroeconomic uncertainties continue to exert downward pressure on cryptocurrency prices.