On Monday, leading cryptocurrencies experienced a significant decline, triggering a widespread sell-off throughout the crypto markets. This downturn was largely driven by investor apprehension over potential new tariffs announced by the United States, which dampened global investment sentiment.
Solana (SOL) saw its value drop by more than 6% within 24 hours. XRP also fell approximately 4%, while Dogecoin (DOGE) plummeted over 7%, based on data from CoinGecko. Ethereum’s price decreased nearly 3%, hovering around $3,200. Bitcoin showed relative strength but still slipped below $93,000, marking a roughly 2.5% decrease for the day.
The market reaction followed weekend statements from U.S. President Donald Trump indicating that starting February 1st, a tariff of 10% would be imposed on imports from eight European nations—potentially rising to 25% in June unless broader trade agreements are reached.
These announcements drove investors toward safer assets and put pressure on markets sensitive to risk.
The cryptocurrency declines mirrored drops seen in stock markets globally. Early trading saw U.S. equity futures tumble sharply; Nasdaq-100 contracts dropped over one percent while European futures also slid amid renewed tariff worries. Asian stock indices showed mixed results with mostly slight losses across the board.
In contrast, traditional safe-haven assets gained momentum: gold and silver prices surged to record levels and government bond futures in Europe increased as well. Meanwhile, the U.S dollar weakened against several major currencies as traders adopted defensive postures ahead of American market openings.
The sell-off led to increased liquidations within crypto positions—approximately $600 million worth of bullish bets were erased in just one day according to Coinglass statistics—with long positions making up most of these losses. Bitcoin’s open interest declined as participants reduced leverage exposure.
This correction follows an initially strong performance for cryptocurrencies earlier this year.
Last week saw Bitcoin climb close to $98,000 fueled by substantial inflows into U.S.-listed spot ETFs; altcoins similarly trended upward before Monday’s retreat indicated traders are reevaluating their risk amidst growing macroeconomic uncertainties.
Altcoins suffered heavier losses compared to Bitcoin—a typical pattern during periods when investors shift away from higher-risk tokens towards more stable and liquid holdings. Market watchers are now focused on whether Bitcoin can maintain support near $90,000—a critical level that may determine if this pullback deepens or stabilizes moving forward.
At present, cryptocurrency prices remain closely aligned with overall global risk appetite trends and continue reacting sensitively to developments related to trade policies, geopolitical tensions and central bank actions alike.