Key Takeaways
- Bitcoin and major altcoins suffered significant losses due to concerns over new US tariff policies.
- Crypto market capitalization decreased by over 10%, representing a $100 billion loss.
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Bitcoin hovered below the $77,000 level in early Monday trading as the broader crypto market downturn deepened. Losses extended across altcoins, with major ones like Ether, XRP, and Solana suffering double-digit losses ahead of the US stock market opening.
Bitcoin falls, altcoins bleed as Trump’s tariffs hit Asian markets
Bitcoin fell below $75,000 today, its lowest level since November, as crypto markets tumbled amid growing concerns over President Trump’s new global tariff policies impacting Asian markets, CoinGecko data shows.
The crypto market selloff intensified with major altcoins posting severe losses.
Ether dropped 17% to trade under $1,400, levels not seen in March 2023. The sharp price drop forced the liquidation of an Ethereum whale, who suffered losses surpassing $100 million.
XRP declined 16% to $1.7, with its market cap falling to $102 million and losing its position among the top three crypto assets. Solana and Dogecoin each fell 16%, while Cardano dropped 15%.
Binance Coin and TRON showed more resilience, declining 8% and 6% respectively. The total crypto market capitalization decreased by over 10% to $2.5 trillion, representing approximately $100 billion in lost value within 10 hours.
The decline coincided with sharp falls on Asian stock markets. Taiwan’s benchmark index plunged nearly 10%, its largest single-day drop since 1990.
Shares of major Taiwanese companies like TSMC and Foxconn tumbled nearly 10%, triggering automatic trading halts. In response, Taiwan’s Financial Supervisory Commission (FSC) introduced temporary short-selling restrictions in an effort to stabilize the market.
The ripple effect was felt across the region. Japan’s Nikkei index plunged over 8% on April 7, while Hong Kong’s Hang Seng Index sank roughly 12%. China’s CSI 300 Index also dropped sharply, falling 7%.
In South Korea, the Kospi shed more than 5% early in the session, prompting a five-minute circuit breaker. Singapore’s Straits Times Index wasn’t spared either, slipping nearly 8%.
Markets in Australia and New Zealand followed the downtrend. The ASX 200 in Australia dropped 6.3%, and New Zealand’s NZX 50 slid more than 3.5%.
Analyst eyes 70% Bitcoin dominance, remains wary of altcoins
Arthur Hayes, co-founder and former CEO of BitMEX, said Monday he’s been actively purchasing Bitcoin while maintaining a cautious stance on altcoins.
“Been nibbling on $BTC all day, and shall continue,” Hayes said, indicating an ongoing Bitcoin accumulation strategy amid market volatility.
The analyst points to cheaper altcoins but expects Bitcoin’s dominance – its share of the total crypto market cap – to increase towards 70%, implying Bitcoin’s market-leading gains.
“Shitcoins are getting in our strike zone,” he said, “but I think #bitcoin dominance keeps zooming towards 70%. So we are not gorging at the shitcoin supermarket.”
Hayes reiterated that the catalyst for Bitcoin’s growth is the central banks’ continued use of monetary stimulus in response to economic slowdowns.
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