Cryptocurrencies Bitcoin, Ethereum, and Dogecoin all plummet as prices dip below $80000

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In a recent development, the market experienced a sharp decline in leading cryptocurrencies over concerns related to President Donald Trump’s tariff policies. Bitcoin and Ethereum saw significant losses, with Bitcoin dropping to an intraday low of $77,097.74 before recovering to $78,000, while Ethereum dipped below $1,600 for the first time since October 2023.

Both Bitcoin and Ethereum witnessed a surge in trade volume, indicating a significant amount of selling pressure in the market. This downturn came following a relatively stable period for cryptocurrency prices on Friday amidst heightened stock market volatility. A staggering amount of over $871 million was liquidated from the market in the last 24 hours, with a sizable $750 million in long positions being wiped out.

Bitcoin’s Open Interest saw a decline of 0.33% within the last 24 hours, while funds locked in Ethereum’s futures contracts plummeted by 8%. Despite these setbacks, traders seemed eager to buy the dip, evident in the Long/Short Ratio showing an increase in Bitcoin long positions over shorts at the time of reporting.

Additionally, the Crypto Fear and Greed Index indicated that market sentiment had shifted back to “Extreme Fear” mode, reflecting the anxiety and uncertainty prevalent among investors.

Among the top losers over a 24-hour period were Berachain (BERA) with a 19.50% drop, Lido DA0 (LDO) with a 16.80% decline, and Movement (MOVE) with a 16.39% decrease in value. The global cryptocurrency market capitalization suffered a significant 7.39% decline, standing at $2.48 trillion.

Furthermore, stock futures took a hit overnight with the Dow Jones Industrial Average Futures plummeting by 1,012 points, or 3.13%, while S&P 500 and Nasdaq 100 Futures recorded losses of 3.55% and 4.55%, respectively. Commerce Secretary Howard Lutnick’s pronouncement that tariffs would not be postponed and remain in effect added to the market’s woes, dashing hopes of any respite from Trump’s tariff policies.

In summary, the recent downturn in the cryptocurrency and stock markets has shaken investor confidence and highlighted the impact of external factors, such as tariff policies, on market dynamics. Traders and investors are advised to closely monitor market developments and exercise caution in their decision-making processes amidst the current climate of uncertainty and volatility.