Bitcoin has fallen below $78,000 as global markets reel from the impact of President Trump’s sweeping tariff policies. The flagship cryptocurrency dropped 6% to $77,730.03, according to Coin Metrics, marking a significant decline from its January all-time high—now down 28%.
After maintaining stability above $80,000 for most of the year, Bitcoin’s recent performance reverses its previous resilience. Last week, it notably bucked the broader market downturn, holding steady between $82,000-$83,000 while stocks tumbled and even gold declined.
The cryptocurrency market has seen more widespread losses, with Ethereum and Solana experiencing steeper declines of approximately 12% each.
Bitcoin’s downward movement triggered substantial liquidations as leveraged traders were forced to sell assets to cover positions. In just 24 hours, more than $247 million in Bitcoin long positions were liquidated, with Ethereum seeing $217 million in similar forced sales, according to CoinGlass data.
Bitcoin Poised for Bearish Week?
Weekend trading proved particularly volatile as investors anticipated further market instability. Trump’s announcement of comprehensive import tariffs, including targeted duties on major trading partners, has intensified fears of a global trade war potentially leading to a U.S. recession. These concerns have prompted investors to reduce exposure to risk assets across all markets.
The market reaction to the tariff policies has been severe and widespread. In just two trading sessions following the announcement, global stocks lost an estimated $7.46 trillion in market value based on the S&P Global Broad Market Index. This includes $5.87 trillion erased from U.S. markets alone, with international markets shedding an additional $1.59 trillion.
Bitcoin’s performance in 2025 has been disappointing, with a 15% decline year-to-date. Without cryptocurrency-specific catalysts to drive independent movement, Bitcoin is expected to continue tracking equities as recession fears overshadow the regulatory improvements that were anticipated to benefit the crypto sector this year.
The current market dynamics highlight Bitcoin’s continued correlation with traditional risk assets during periods of significant macroeconomic uncertainty, despite occasional periods of divergence.
Any Hope For A Crypto Bounce?
Still, some analysts believe that now that “Liberation Day” has come and gone, the market focus could shift to crypto regulation next. Recall that Trump’s SEC pick Paul Atkins has received a nod from the Senate, paving the way for potentially industry-friendly legislation down the line.
In addition, the latest TVP report highlighting a surge in bitcoin startup investments for 2024 could just be the tip of the iceberg, along with the steadily rising market interest in bitcoin ETFs. For now, bitcoin is in corrective territory as traders are likely holding out for larger market catalysts that could confirm that the longer-term uptrend could stay intact.
Market uncertainty could also prove beneficial for bitcoin if it regains its status as “digital gold” while the precious metal also finds itself in corrective territory these days. The latest major pullback could be viewed as an opportunity to buy on dips, especially if trade tensions flare further and traders are on the hunt for an alternative store of value.
In the meantime, bitcoin could be in a holding pattern unless clearer market trends present themselves or significant industry developments are seen.
