‘Orange Monday’ sees Bitcoin test $75,000 support line - bounce on Tuesday

After Black Monday in 1987, the Asian financial meltdown in 1997, the Dotcom crisis in 2001, the Lehman brothers crisis in 2007, the European housing crisis in 2013 and the Covid-19 crisis in 2020, we now have a new stock market crisis on our hands.

The stock market (and crypto market) crash of the past few days, which was jokingly called ‘Orange Monday’ (instead of Black Monday and in analogy with Trump’s skin color) on social media, was relatively mild in my opinion. However, as it could go on for a while, the losses are piling up.

Bitcoin fell during the Asian trading hours on Monday and recovered afterwards. The support line of $75,000 was broken briefly and then acted as support again. At the time of writing, Bitcoin is experiencing a bounce on Tuesday and trades for $79,000 again.

Ackman

The first fault lines in Trump’s cabinet emerged yesterday, as did the first criticism from Wall Street. It was once again the well-known American billionaire Bill Ackman who called Trump to order. He asked for a cessation of the global trade war because “otherwise we are heading for an economic nuclear winter”.

Meanwhile, the stock exchanges and crypto markets continue to bleed. The Hong Kong stock market lost 13% on Monday, an unprecedented drop. On the crypto markets, the declines of XRP, Solana and Ethereum in the top 10 of CoinMarketCap were particularly noticeable. Compared to those two, Bitcoin still did quite well.

It now mainly depends on whether a solution is found in the coming days or whether we will see more import tariffs.