Cryptocurrencies staged a dramatic intraday recovery on Monday after an early sell-off triggered by sweeping US tariffs rattled global markets and dashed expectations of digital assets decoupling from broader macroeconomic pressures, according to a report by Bloomberg.
Bitcoin briefly tumbled as much as 5.6% to $74,425 — its lowest level since the day after Trump’s 2024 election victory — before rebounding to trade flat near $79,000 by mid-afternoon in New York. The reversal mirrored wild swings across equity markets, as investors grappled with the global ramifications of Trump’s aggressive trade policy.
Other major tokens including XRP, solana and cardano followed a similar trajectory, stabilising after steep early-session declines. The overall crypto market capitalisation, which at one point dropped 11% to $2.5tn, has since recovered some ground, according to CoinGecko.
The volatility came amid a broader sell-off across asset classes. Asian and European stocks slid, while the S&P 500 swung nearly 8% intraday, underscoring the fragility of sentiment in the face of escalating trade tensions. Hopes that digital assets could act as a haven from traditional market turmoil were temporarily dashed.
“The crypto industry entered 2025 anticipating policy tailwinds from a Trump presidency – instead, it’s been hit with a Category 5 storm,” said Matthew Graham, CEO of digital asset venture firm Ryze Labs. “We expected support, but so far it’s been a harsh reality check.”
Data from Coinglass revealed that roughly $1.5bn in bullish crypto positions were liquidated over the past 24 hours — the highest daily figure so far this year. Meanwhile, options market data shows a notable rise in demand for downside protection, with open interest in bitcoin put options at the $70,000 strike now leading all expiries, according to Deribit.
Despite earlier hopes of reduced correlation with traditional tech stocks, Monday’s price action reaffirmed the strong linkage between crypto and high-beta equities. The Nasdaq 100, to which digital assets have shown strong positive correlation since the Covid era, remains a key barometer for crypto traders.
“Crypto continues to act as a leading indicator for broader risk sentiment,” said Julia Zhou, COO at crypto market maker Caladan. “The idea of crypto as an uncorrelated hedge is being tested in real time.”
