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)

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.

Widely followed cryptocurrency analyst Ali Martinez called $97,000 the "most critical resistance barrier" for Bitcoin, where roughly 2.27 million investors acquired over 1.64 million BTCs. 

"Breaking through this supply wall could open the door for new all-time highs," Martinez predicted.

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