President Donald Trump's tariff confirmation sent top cryptocurrencies down on Monday

The Sunday rally was short-lived as President Donald Trump's tariff confirmation sent top cryptocurrencies down on Monday.

The Sunday rally was short-lived as President Donald Trump's tariff confirmation sent top cryptocurrencies down on Monday.

What Happened: Bitcoin dumped to an intraday low of $85,081, a day after the announcement of a U.S. strategic cryptocurrency reserve powered it above $95,000.

Ethereum tanked over 13% to an intraday low of $2,097.08, erasing the Sunday upsides, while Dogecoin also took a U-turn, plunging over 15%.

The pullback liquidated $804 million from the cryptocurrency market in the last 24 hours, with $86 million in long positions wiped out.

However, over $1 billion in short positions risked liquidation if Bitcoin rebounded to around $92,300.

Bitcoin's Open Interest plummeted 9.88% in the last 24 hours. Interestingly, Binance futures traders were buying the dip, with long positions surging to 69% of the total bets.

The Crypto Fear and Greed Index fell back into the "Extreme Fear" region, fuelling concerns of further sell-offs.

Top Gainers (24-Hours)

Top Losers (24-Hours)

Global Crypto Market Total Market Cap: $2.84 Trillion

7 Days Chart:

The global cryptocurrency market capitalization tanked 9.27% to $2.84 trillion in the last 24 hours.

Stocks tumbled on Monday. The Dow Jones Industrial Average fell 649.67 points, or 1.48%, to close at 43,191.24. The S&P 500 sank 1.76% to end at 5,849.72, while the tech-focused Nasdaq Composite lost 2.64% to close the session at 18,350.19.

The sell-offs were triggered after Trump reiterated the imposition of tariffs on key trade partners Canada, Mexico, and China.

Investors will focus on the February jobs data, which is due out on Friday, to assess the strength of the U.S. economy.

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Analyst Notes: Popular blockchain analytics firm CryptoQuant noted that Bitcoin's short-term holders were experiencing modest losses, which could spur accumulation as prices decline.

"For Bitcoin to retest its ATH, a substantial bullish impulse is required, marked by a breakthrough of the STH Cost Basis level ($90,000–91,000) and the ability to maintain prices above this threshold to restore short-term investor confidence," the firm projected.

The cost basis for short-term holders is the original buying price of an investment held for less than a year.

Image Via: CryptoQuant

"STHs are currently in a slight loss, which might encourage them to accumulate if the price continues to drop. If the price manages to stay above the STH Cost Basis and rebuild confidence among short-term investors, we can expect Bitcoin to retest its all-time high."

If we look at the behavior of Binance futures traders, we can see that they are actively buying the dip, with longs surging to 69% of the total bets.

If BTC price drops further, we might see more short positions liquidated. At the moment, over 1B in shorts are at risk if BTC rises to around 92,300.0.

Bitcoin's Open Interest decreased by 9.88% in the last 24 hours.

"The Crypto Fear & Greed Index has slipped back into the Extreme Fear territory, which is noteworthy. Typically, when the index is in this zone, it indicates that market sentiment is extremely pessimistic, and further sell-offs might be expected." Benzinga's Take: Bitcoin's price action on Monday was volatile, with a large move down from the gains seen on Sunday. The pullback liquidated a significant amount of funds from the cryptocurrency market.

The market will now turn its attention to the U.S. jobs report for February, which could provide further clues about the health of the economy and impact market sentiment. A strong report could support further gains in the stock market, while a weak report could trigger more sell-offs.