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Bitcoin plunged to a near one-month low in early morning trading on Monday, continuing its recent downward trend as risk appetite waned following U.S. President Donald Trump’s imposition of steep trade tariffs, igniting fears of a global trade war.
Traders remained on edge, concerned about a potential “Black Monday” scenario similar to the 1987 market crash, where global stock markets could experience sharp declines after suffering significant losses in the past week.
Cryptocurrency markets largely followed suit, with the broader market sentiment aligned with that of risk-driven equities, leading to a sharp drop in crypto prices. The total cryptocurrency market capitalization has lost about $500 billion since last week.
Bitcoin fell as much as 8.6% to $75,867 by 05:22 ET (09:22 GMT), marking its lowest point since November 2024.
Trump Tariffs Decimate Global Markets, Crypto Prices Take a Hit
Trump’s tariffs have led global equity markets to lose approximately $4 trillion since last Wednesday, and cryptocurrency markets have similarly suffered.
As traders adopted a risk-averse stance in response to the heightened economic uncertainty under Trump’s policies, markets saw widespread declines. Several countries targeted by Trump’s tariffs have openly criticized the measures and indicated plans for retaliation.
Riskier assets like cryptocurrencies were particularly affected, with traders gravitating toward safe-haven assets like the Japanese yen and gold.
Bitcoin’s losses were compounded by nearly $160 million worth of coins being moved onto the Kraken exchange, signaling the potential for a large sale by a significant holder, or “whale.”
This movement heightened fears of a possible “Black Monday” event, especially if U.S. markets experience further declines. Any additional losses in equities are likely to spill over into the cryptocurrency market.
Crypto Prices Plummet: Altcoins Hit Recent Lows Amid Risk Aversion
The broader cryptocurrency market mirrored Bitcoin’s struggles, with other major coins suffering steep losses. Ethereum (ETH), the world’s second-largest cryptocurrency, plunged over 17% to $1,485.59, its lowest point since March 2023.
XRP dropped 16.5% to $1.75, while Solana, Cardano, and Polygon saw declines between 14% and 17%.
Among meme coins, Dogecoin fell nearly 17%, and the $TRUMP token dropped 16.5%, reaching a record low of $7.57.
