Monday opened rough for crypto investors. The total crypto market cap shed $96 billion in just 24 hours, dropping to $2.21 trillion as selling pressure swept through Bitcoin, Ethereum, and major altcoins alike.
So what triggered the carnage? A mix of macro shocks, technical breakdowns, and fading investor confidence hit at the same time. Let’s walk through what actually happened and where things might go from here.
Trump Tariffs Rattle Global Risk Appetite
The sell-off didn’t start inside crypto. It started in Washington.
US President Donald Trump announced 15% global tariffs, and markets around the world didn’t take it well. When traditional markets get nervous, risk assets like crypto tend to absorb the pain first. That’s exactly what happened here.
The total crypto market cap (TOTAL) broke below the $2.22 trillion support level following the announcement. Broad risk-off sentiment took hold quickly. Weak liquidity made things worse, since there weren’t enough buyers to absorb the wave of selling hitting Bitcoin and altcoins simultaneously.
If that selling pressure continues, analysts are watching the $2.13 trillion level as the next major floor. A break below $2.21 trillion could trigger cascading liquidations, which would extend losses and push any meaningful recovery further out on the calendar.
Bitcoin Breaks the $65,000 Floor
Bitcoin dropped 4% on the day, trading around $64,987 at the time of writing. More importantly, it broke below the lower boundary of its recent consolidation range — a technical signal that short-term momentum has shifted firmly toward sellers.
The $65,000 level had been acting as a key support. Losing it matters. When Bitcoin breaks a widely-watched support level, short-term holders often panic and sell, which accelerates the move lower. Rising trading volume during the decline would confirm that bearish pressure is strengthening, not fading.
The next support sits at $62,893. That’s the level traders are watching if selling continues. On the flip side, a decisive daily close back above $65,000 would change the picture quickly. Renewed buying at that level could push Bitcoin toward $67,674 and signal that bulls are reasserting control.
LayerZero Takes the Hardest Hit Among Altcoins
While Bitcoin’s 4% drop stung, LayerZero (ZRO) had a genuinely brutal day. The token fell 11.6% in 24 hours, landing at $1.50 and earning the unfortunate title of worst-performing major altcoin on Monday.
The technical picture for ZRO looks particularly concerning. The sharp decline pushed the token below its 50-day exponential moving average (EMA) after it had already failed to break above its 200-day EMA. That double rejection signals that sellers are firmly in control across both short and medium-term timeframes.
Immediate support sits at $1.45. If risk-off sentiment sticks around and the broader crypto market keeps sliding, ZRO could test that level quickly. A recovery would require reclaiming $1.58 and holding it as support, which would open a path toward $1.75 and put the bearish trend on pause.
Regulatory Headlines Add to the Noise
Beyond the price action, two regulatory developments are circulating through the crypto news cycle today.
First, crypto analytics firm Elliptic published a report alleging that five exchanges — including Bitpapa and Exmo — are helping Russian users bypass international sanctions. According to Elliptic, these platforms enable ruble-to-crypto conversions that allow funds to cross borders and get converted to other currencies without traditional intermediaries.
Second, the SEC’s Division of Trading and Markets released guidance clarifying how broker-dealers should treat dollar-pegged stablecoins on their balance sheets. Under the new guidance, broker-dealers can apply a 2% haircut to stablecoin holdings rather than the previously assumed 100%. That’s a meaningful change, allowing firms to count most of those assets toward their net capital requirements. The guidance came through an FAQ document on crypto asset activities and distributed ledger technology.
Neither development is a market-mover on its own. But both add to the swirling uncertainty that tends to keep cautious investors on the sidelines.
What to Watch Next
The next 24 to 48 hours matter a lot for short-term crypto market direction. Bitcoin’s ability to reclaim $65,000 is the clearest signal to watch. If it holds and closes above that level, confidence could return fast. If it can’t, the $62,893 target becomes increasingly likely.
For the broader market, the $2.21 trillion level on TOTAL is the line in the sand. A sustained break below it would signal that the corrective phase has room to run. Recovering above $2.22 trillion, on the other hand, would indicate that buyers absorbed the tariff shock and are ready to push back.
Macro news remains the wildcard. If tariff tensions escalate or additional risk-off headlines emerge, crypto will feel it before most other asset classes. But if global sentiment stabilizes, patient buyers could find this dip attractive sooner rather than later.