Ugly Monday crash as Bitcoin drops sharp Sunday evening. Getty Images
Bitcoin slipped below the $78,000 mark as financial markets worldwide reeled from renewed volatility following the introduction of strict global tariffs by former U.S. President Donald Trump. The digital currency dropped more than 6%, settling at $77,730.03, according to Coin Metrics.
Once trading comfortably above $80,000 for most of the year, Bitcoin is now down nearly 28% from its record high in January. This recent drop has reignited concerns about market instability and the future of digital assets.
A Shift in Crypto's Resilience
Despite its usual pattern of moving in sync with tech stocks, Bitcoin briefly defied expectations last week. As stocks plunged and even gold declined, Bitcoin held its ground between $82,000 and $83,000, closing the week on a high note.
However, that resilience proved short-lived. The latest downturn has brought Bitcoin back in line with broader risk-asset sentiment, confirming its vulnerability to global financial shocks.
Other Cryptos Take a Bigger Hit
While Bitcoin’s slide was steep, other major cryptocurrencies fell even harder. Ethereum and Solana’s token each plummeted around 12% overnight. The declines sent shockwaves through the crypto trading space, sparking a wave of liquidations.
In just 24 hours, over $247 million in Bitcoin long positions were wiped out, according to CoinGlass. Ethereum followed closely with $217 million in liquidations as traders exited losing bets.
Market Panic Over the Weekend
With cryptocurrencies trading non-stop, the sell-off intensified over the weekend. Investors, spooked by Trump's retaliatory tariffs and the looming threat of a global recession, dumped their digital assets in anticipation of deeper losses.
The aggressive trade duties have raised fears of a full-scale trade war. Investors are now grappling with the possibility that these moves could drag the U.S. and other economies into a recession.
Global Stocks in Free Fall
The ripple effects of the tariff announcement were immediate and severe. In just two trading sessions, global markets lost a staggering $7.46 trillion in value, based on the S&P Global Broad Market Index. The U.S. alone saw $5.87 trillion erased, while international markets accounted for an additional $1.59 trillion in losses.
This dramatic downturn underscores how fragile investor confidence remains in the face of aggressive geopolitical shifts.
Outlook for Bitcoin and Crypto
Bitcoin has already lost 15% in 2025 and could see further declines if market conditions worsen. With no crypto-specific catalyst in sight, analysts expect digital currencies to continue mirroring equity trends. For now, recession fears appear to outweigh any potential regulatory or institutional support that once promised to lift crypto markets.
The coming weeks may prove critical in determining whether Bitcoin can find a new support level or if further turbulence lies ahead.
