Crypto market sheds $1.3 trillion amid bitcoin slide below $77,000
Listen to article
A sharp decline in bitcoin and major cryptocurrencies has wiped an estimated $1.3 trillion from the global digital asset market, triggering fresh concerns over a possible broader financial downturn.
The price of bitcoin fell below $77,000 on Sunday, down more than 10% from a record high of nearly $90,000 reached last week.
Other major tokens—including ethereum, XRP, solana and dogecoin—recorded even steeper losses of around 15% over the past 24 hours.
Bitcoin has recently lost the key $79,000 to $80,000 support level, which it had managed to hold for the past month.
The downturn follows heightened volatility in global markets, triggered by President Donald Trump's announcement of sweeping global tariffs.
The so-called "Liberation Day" tariffs have stoked fears of a crisis scenario, with Wall Street reeling and crypto traders on high alert.
The declines followed a brutal week for global equities. US stocks posted their worst two-day loss since 2020, after the announcement of broad tariffs sparked fears of a trade war and global recession.
The S&P Global Broad Market Index reported a $7.46 trillion loss in market value over two sessions, with US stocks accounting for $5.87 trillion of that.
'Investors are fleeing risk assets across the board,' said an analyst at CoinGlass. 'Crypto, which trades 24/7, was hit over the weekend by heavy liquidations.'
CoinGlass data showed that bitcoin saw over $247 million in long liquidations in the last 24 hours, as traders betting on price gains were forced to sell to cover their losses. Ether followed with $217 million in long liquidations.
Bitcoin, often viewed as a proxy for risk appetite and tech stocks, initially resisted the global selloff last week, trading in the $82,000 to $83,000 range. But the downturn has now caught up, with no major crypto-specific catalyst in sight.
Bitcoin is now down 15% since the start of 2025.
Investor focus is now turning to a potential policy response from the US Federal Reserve. Expectations have risen that the central bank may cut interest rates to head off a possible recession, a move that could inject further liquidity into the financial system.
Looking ahead, analysts say a rebound in bitcoin could hinge on political signals or emergency measures.
A potential shift in Trump's stance or emergency intervention by the Federal Reserve are the two things that could help the bitcoin price climb back over $80,000.
The losses mark the largest market drawdown for cryptocurrencies since the start of the year and come as Congress prepares to debate potential regulatory changes to the digital asset sector.
Cryptocurrency prices over last 24 hours (CoinMarketCap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
23 minutes ago
- Business Recorder
Asia's factory activity shrinks in May as US tariffs bite
TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as US President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the US, uncertainty will likely keep companies from boosting production or spending, analysts said. 'It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs,' said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. 'With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies,' he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from US tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over US trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. Japan and the US on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all US tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed.
Business Recorder
30 minutes ago
- Business Recorder
Aussie, kiwi gain as tariff risks drag on dollar
SYDNEY: The Australian and New Zealand currencies gained on Monday as the US dollar weakened on an escalation in global trade tensions, though negative sentiment in equity markets could limit further gains. The Aussie rose 0.2% to $0.6449, building on a modest 0.5% gain in May. It remains to be seen if it can sustain levels above the 200-day moving average of $0.6441, a threshold it has struggled to hold for the most part of last month. The kiwi dollar also advanced 0.5% to $0.5991 in holiday-thinned trade, after finishing last month with a modest rise of 0.6%. It is facing some heavy resistance at 60 cents and support is at the 200-day moving average of $0.5872. The US dollar starts the week on the back foot after President Donald Trump threatened to double duties on imported steel and aluminium to 50% from Wednesday. He accused China of breaching agreements made during Geneva trade talks. 'The broad-based USD selling is benefiting high-beta anti-dollar currencies such as Aussie and kiwi. This may be the latest iteration of the 'sell America' trade as a response to the post-close steel tariffs announcement,' said Sean Callow, a senior analyst at ITC Markets. 'This is not the ideal fuel for AUD and NZD, however, with upside likely limited by the pullback in equity sentiment.' Down Under, the Reserve Bank of Australia will publish the minutes of its May policy meeting on Tuesday. The RBA cut interest rates to a two-year low last month and left the door open to further easing as cooling inflation at home offered scope to counter global trade risks. RBA Assistant Governor Sarah Hunter is scheduled to give a speech at 1:05 p.m. local time (0305 GMT) on Tuesday about Australia's links with the world economy.
Business Recorder
30 minutes ago
- Business Recorder
US dollar slips as tariff worries resurface
NEW YORK: The US dollar slipped across the board on Monday, giving up the previous week's gains, as markets weighed the outlook for President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation. The US currency fell after Trump said on Friday that he planned to double duties on imported steel and aluminum to 50% from Wednesday, and as Beijing hit back against accusations it violated an agreement on critical minerals shipments. China's Commerce Ministry said on Monday the charges were 'groundless,' and promised to take unspecified forceful measures to safeguard its interests. Treasury Secretary Scott Bessent said on Sunday Trump and Chinese President Xi Jinping were likely to have a call soon, and 'this will be ironed out.' Michael Brown, market analyst at online broker Pepperstone in London, noted that the selling pressure on the dollar was broad-based. 'Any time we see a resurgence in tariff concerns, everyone begins to pile back into the 'sell America' trade once more,' Brown said. The dollar dropped nearly 1% to 142.60 yen, nearly wiping out its gain against the Japanese currency last week. The euro rose 0.8% to $1.1437 - its highest since late April. Later in the week, focus will be on the European Central Bank's interest rate decision and subsequent outlook. The dollar extended its losses on Monday after data showed US manufacturing contracted for a third straight month in May and suppliers took longer to deliver inputs amid tariffs, potentially signalling looming shortages of some goods. Earlier in the session, data showed European manufacturing took another step towards stabilisation in May, but Asian factory activity declined. The dollar index, which measures its performance against six other major currencies, eased 0.7% and at 98.63 was just shy of the three-year low of 97.923 touched in late April. The US currency has been whipsawed for weeks by Trump's on-again-off-again trade war, and investors have been questioning the currency's safe-haven status as a flare-up in tensions stokes worries of a potential US recession. Last week, the dollar got some respite, rising 0.3% after trade talks with the European Union got back on track and a US trade court blocked the bulk of Trump's tariffs on the grounds that he overstepped his authority. An appeals court reinstated the duties a day later, and Trump's administration said it had other avenues to implement them if it loses in court, but many analysts said it showed there were still checks in place on the president's power. Fiscal worries have also given rise to a broad 'sell America' theme that has seen dollar assets from stocks to Treasury bonds dropping in recent months. Those concerns come into sharp focus this week as the Senate starts considering the administration's tax cut and spending bill, estimated to add $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade. The fate of section 899 of the bill could be crucial, according to Barclays analysts. 'S899 would give the US free rein to tax companies and investors from countries deemed to have 'unfair foreign taxes' (and) could be seen as a tax on the US capital account at a time when investor nervousness towards US assets has grown,' they said in a research report.
