On Monday morning Asian time, the cryptocurrency market was shaken all at once. Bitcoin dropped from $67,700 in the middle of the night to $64,270, but then recovered to around $66,300. Since the market was illiquid, the price swings are larger.

The background of this sharp decline is linked to the drop in U.S. stocks. The S&P 500 futures also fell by 0.84%. Additionally, the new Trump administration announced a 15% global tariff, which caused overall market anxiety. Tensions around Iran also seem to be rising, leading to safe-haven buying. That’s why gold prices rose to their highest since January 30.

The altcoin market also suffered significant damage due to liquidity shortages. Solana and Sui dropped 7-8%, with liquidations reaching $270 million. However, as European trading hours began, prices rebounded, indicating signs of a bottom.

Looking at the derivatives market, cautious sentiment persists. Open interest in futures has been below $100 billion for over two weeks, and the liquidation amount in the past 24 hours was $500 million. The 14% increase in Tether Gold futures open interest over 24 hours suggests a shift from risk assets to gold.

The active buying of put options for Bitcoin at $58,000, $60,000, and $62,000 also indicates strong caution about further declines. With liquidity so tight, sudden market movements could happen at any time.