Today, the cryptocurrency market experienced a massive bloodbath, with leading digital currencies like Bitcoin, Ethereum, Solana, and Dogecoin plummeting by 6 to 12%. What triggered this unprecedented downfall? Let's dissect the factors behind it.
Asian stock markets opened sharply lower this Monday morning, triggering a significant collapse in the cryptocurrency market. Key indices in China, Taiwan, Japan, and Singapore plummeted by 9 to 10% at the opening, plunging investors into a state of total panic.
This massive decline in risk assets immediately impacted the prices of major cryptocurrencies. The Bitcoin (BTC) dropped by nearly 7%, falling to a critical support level at $77,500. Transaction volumes skyrocketed by 220%, exceeding $44 billion in 24 hours. According to Coinglass data, BTC liquidations even reached $322 million during this period.
Some are even comparing this “Black Monday” with that of 1987. So, will the SP500 follow the same trend? And most importantly, will Bitcoin take the same path today?
While BTC showed resilience last week amidst the Dow Jones drop, it is down today by 7%. However, it fares better than Asian indices plunging by 9-10%. Conversely, precious metals like gold and silver are on a clear uptrend, reigniting debates on Bitcoin’s “digital gold” status.
According to Peter Schiff, a gold-specialized economist, “Ethereum has already dropped to its lowest level since October 2023, losing 65% from its peak, and BTC just slipped below $81,000, hitting a new low from last week. It’s going to be a very long day for those caught in Bitcoin ETFs.”
As Donald Trump’s trade war raises fears of a US recession, Bitcoin’s ability to act as a safe haven asset is once again in question. Nonetheless, long-term investors remain optimistic, such as Hunter Horsley, CEO of Bitwise Investments, who states:
“As nations trust each other less and businesses struggle more to conduct business, a global, digital, and apolitical store of value – controlled by no nation – appears more differentiated. Bitcoin’s role in the world has never been more valuable.”
The correction movement has spread throughout the altcoin market. Ethereum (ETH) has plunged by 13.5%, dropping below the $1,812 threshold. The leading alternative cryptocurrency has now lost over 55% of its value since the beginning of 2025.
Investors believe that ETH’s decline paves the way for a new price range between $1,100 and $1,300. However, whales seem to be taking advantage of this drop to strengthen their positions, with a mysterious group known as “7 Siblings” spending $42.66 million to buy 25,100 ETH at around $1,700.
Other altcoins have not been spared, experiencing similar declines. The XRP has dropped by 14.5% below the critical level of $2, while analysts anticipate a further drop to $0.65. The Solana (SOL) has lost 14% to retreat to $97 and the Dogecoin (DOGE) plummeted by 16% to $0.143.
In conclusion, this massive collapse in the cryptocurrency market, following the plunge of Asian stock indices, raises new questions about Bitcoin’s ability to act as a safe haven amidst economic turbulence.
With rising uncertainties due to Donald Trump’s trade war, investors will need to navigate cautiously in an extremely volatile environment. One thing is certain, this dark day for the crypto sector will leave lasting marks.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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