- Crypto markets drop sharply Monday on renewed US tariff concerns, risk-off sentiment
- Bitcoin tests $77k low, ETH hits $1.5k low; over $758 million longs liquidated
- Key support levels to watch now are $75k for Bitcoin, $1.5k for Ethereum, analysts say
Cryptocurrency prices dropped sharply in Asian trading early Monday, April 7th, signaling renewed risk caution across global markets as U.S. tariff concerns resurfaced.
Bitcoin and Ether led the decline during overnight trading.
Why Has Crypto Dropped Sharply Monday Morning?
The downturn reflects investor reactions to rising geopolitical and macroeconomic pressures, including President Trump reaffirming commitment to extensive tariffs over the weekend.
U.S. equity futures also declined ahead of the market open. Because crypto markets operate 24/7, they often react first to shifting global sentiment, as explained by Charlie Sherry, Head of Finance at BTC Markets.
Bitcoin fell approximately 7% from late Sunday levels to an early Monday low near $76,900. Ether dropped to touch $1,540, its lowest intraday point since October 2023. Both assets pared some losses afterward but remained under pressure.
Related: Three Reasons Why Crypto Market Might Recover Strongly in Q2 2025
What Does Options and Liquidation Data Show?
Derivative markets reflected the sharp negative shift. Nearly $758 million in bullish crypto positions were liquidated over the last 24 hours, the highest amount in roughly six weeks, according to Coinglass data. This indicates significant pain for leveraged long traders.
In the options market, activity leaned heavily toward puts (downside protection). Bloomberg reported high open interest for Bitcoin put options at the $70,000 strike price on Deribit. FalconX’s Head of APAC Derivatives, Sean McNulty, confirmed the skew for puts increased “considerably,” signaling heightened demand for hedging against further declines.
How Does Crypto Relate to Broader Markets?
Despite hopes for decoupling, the price action confirms crypto’s strong correlation with traditional risk assets like the Nasdaq 100 remains intact. Julia Zhou, COO of Caladan, noted digital assets continue to function as leading indicators for broader risk asset movements.
Related: Trump Tariffs Shock Markets: Crypto Loses $100B, Bitcoin Price Unstable
What BTC/ETH Support Levels Are Now in Focus?
Following the drop, crucial support levels come into focus. FalconX’s McNulty warned that support at $75,000 for Bitcoin and $1,500 for Ether could be tested again if bearish sentiment persists. Holding these levels will be critical for preventing deeper declines as the trading week begins.
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