Cryptocurrency markets experienced a strong jolt on Monday that led to massive losses, amid a general atmosphere of anxiety dominating global markets. Bitcoin, the largest and most famous digital currency in the world, suffered significant losses following sharp declines in Asian markets, prompting investors to reconsider their strategies towards high-risk assets.
In detail, the total market value of cryptocurrencies has dropped by nearly $200 billion in just a few hours, representing a shocking decline that pushed the market to its lowest levels since early November. However, these significant losses have somewhat reduced with Bitcoin recording a partial rebound, while other cryptocurrencies continued to decline. As a result, total market losses stabilized at around $110 billion by the end of Monday's trading.
Bitcoin fell by more than 7.4% to trade at $76,700, after spending most of this year hovering above $80,000. It is worth mentioning that the currency reached its all-time high in January, and is now about 28% away from it. Other currencies have declined more sharply, with Ether losing about 18% of its value, while Ripple fell by as much as 20%.
This collective decline is attributed to increasing pressures in global financial markets, particularly amid growing concerns about recession and U.S. President Donald Trump's imposition of new and strict tariffs on global exports. These actions have caused U.S. stocks to record their worst performance since 2020, sparking a wave of anxiety among investors and leading them towards safe havens away from digital assets known for their sharp volatility.
