Cryptocurrency prices sink more than 16%
More than 324,760 traders were liquidated on Monday, with the largest being a Bitfinex trader who lost over $23 million in just 24 hours.
Cryptocurrencies have not only erased all the gains accumulated since Donald Trump’s election victory in November, but Ether has also dropped back to levels not seen since early 2023, following the collapse of FTX.
On Monday, March 7, the crypto market plunged more than 16% amid a growing wave of risk aversion triggered by Trump’s aggressive trade policy. While cryptocurrencies tried to decouple from Wall Street’s correction last Friday, they failed to hold their ground as the new week began.
In this context, Bitcoin tumbled sharply, breaking below the $80,000 mark and trading around $77,000, according to Binance data. Ethereum also took a significant hit, falling 15.5% to $1,511.
The pain extends across the broader crypto space. Altcoins are also suffering steep losses. Ethereum leads the decline, followed closely by Solana (-14.4%), Ripple (-14.3%), SUI (-14.2%), and Chainlink (-14.1%).
Crypto Fear Index Nears “Extreme” Levels
The reason behind the panic is clear: the trade war is now in full swing. Major global stock markets are deep in the red, and investors are fleeing to traditional safe-haven assets. The VIX volatility index surged to 39 points, while the Crypto Fear & Greed Index plunged to 23, signaling a state of “extreme fear” across the sector.
According to data from CoinGlass, the crypto sell-off triggered liquidations worth over $1 billion. Bitcoin-related liquidations alone exceeded $342 million in the past 24 hours, while Ethereum liquidations reached $296 million. Other heavily liquidated tokens included Dogecoin, Cardano, SUI, Litecoin, and Chainlink.
More than 324,760 traders were liquidated on Monday, with the largest being a Bitfinex trader who lost over $23 million in just 24 hours.
The relentless drop has dragged the Crypto Fear & Greed Index even lower, down to 17—firmly in the “extreme fear” zone.
No Relief from Tariff Policy Rumors
Over the weekend, speculation swirled—more wishful thinking than anything else—about a potential shift in Trump’s tariff stance, with some hoping for a rollback, delay, or even cancellation of certain tariffs. None of that materialized. Instead, the president’s response was firm.
“I don’t want anything to fall, but sometimes you need to take medicine to fix something. We have a $1 trillion trade deficit with China. We’re losing hundreds of billions a year. Unless we fix that, there won’t be a deal,” Trump declared.
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