Bitcoin recently dipped below $78,000, catching the attention of investors bracing for more turbulence in the financial markets. This comes on the heels of the United States equities suffering their most significant drop since 2020, largely due to the rollout of former President Donald Trump’s strict global tariffs.
At present, Coin Metrics reports that Bitcoin has fallen by 6% to $77,730.03. For most of the year, the cryptocurrency had hovered above the $80,000 mark, with only a few minor fluctuations due to recent market volatility. This marks a 28% decline from its peak in January.
Usually, Bitcoin’s movement mimics that of hefty tech stocks and is frequently perceived by traders as an early indicator of market sentiment. Interestingly, last week, Bitcoin defied the broader market downturn. It stayed between $82,000 and $83,000 and even climbed towards the week’s end, contrary to the falling stocks and gold prices.
Other digital currencies faced steeper declines overnight. Both Ether and Solana’s token plunged around 12%.
Bitcoin’s drop sparked a rush of long liquidations. Traders, who had wagered on Bitcoin’s price increase, found themselves needing to offload their assets to mitigate losses. CoinGlass reports over $247 million in long liquidations for Bitcoin within the last day. During the same timeframe, Ether experienced $217 million in long liquidations.
Investors, already on edge, hurriedly offloaded their cryptocurrencies—which trade around the clock—over the weekend. Their concerns deepened after Trump’s tariffs elicited fears of a global recession, pushing investors to offload risky assets.
The tariffs, covering all imports along with specific duties for major trade partners, have ignited fears of an extensive trade war potentially ushering the U.S. into recession. These growing apprehensions about the tariffs’ widespread effects sent shockwaves through global markets.
Following the tariff announcement, global stocks saw a staggering $7.46 trillion wiped out in market value within two trading sessions, according to the S&P Dow Jones Indices, based on the S&P Global Broad Market Index. This figure comprises $5.87 trillion in losses from the U.S. stock market and an additional $1.59 trillion in market value losses across other major markets worldwide.
In 2025, Bitcoin has seen a 15% decline, and unless a crypto-specific catalyst emerges, it is anticipated to continue mirroring the movements of equities, as fears of a global recession cast a shadow over any regulatory advantages that cryptocurrencies were expected to gain this year.
