Bitcoin has dropped below the $75,000 threshold, recording a session low of $74,637, as global investors react nervously to sweeping new import tariffs rolled out by U.S. President Donald Trump. The more than 10% decline from last week’s $84,000 high reflects mounting unease over the potential economic fallout from intensified trade protectionism.
This sharp sell-off underscores how increasingly linked the crypto sector has become with wider global financial movements. Traditional equities have also taken a hit, with key benchmarks like the Dow Jones Industrial Average posting significant losses, highlighting a broader wave of market instability.
Trump’s Tariff Policy Triggers Global Shockwaves
Driving this financial disruption is a major change in U.S. trade policy: the introduction of all-encompassing tariffs on imported goods. The move has unsettled analysts and economists, raising alarms over a possible return to trade conflicts similar to the 2018–2019 U.S.-China standoff.
As fears grow, investors are quickly shifting away from volatile assets, with cryptocurrencies taking a heavy blow. Bitcoin, once championed as a hedge against economic turbulence, is now being swept into the broader market sell-off driven by negative sentiment.
Although Bitcoin held relatively firm earlier in the week, trading in the $83,000 to $84,000 range even as equities and commodities fluctuated, the latest global headlines have sparked a renewed plunge. The asset is now down 28% from its peak of $109,000 reached in January 2025.
Ethereum and Altcoins Hit Hard by Massive Liquidations
Ethereum (ETH), the second-largest crypto by market cap, has seen an even steeper fall than Bitcoin. Over the past 24 hours, ETH slid 14.66% to $1,544.63. Losses have also extended across the entire cryptocurrency space.
According to CoinGlass, more than $464 million in leveraged long positions for Bitcoin and Ethereum were liquidated in just one day. Total crypto liquidations have surpassed $853 million, affecting over 280,000 traders worldwide.
Other major tokens like Solana, Dogecoin, and XRP suffered as well, each recording losses in the double digits. The Coinbase 50 Index, which tracks the top 50 traded assets on the exchange, dropped by 11.08%, indicating widespread weakness across the board.
Analysts Warn of Prolonged Downtrend Amid Mounting Economic Woes
Research outfit 10X Research pointed to Bitcoin’s decline below its $96,000 support threshold as a key technical warning sign. Experts believe that this latest drop is more than just a typical correction and is driven by larger economic challenges.
Concerns over accelerating inflation, declining manufacturing activity, and weaker international trade continue to weigh on market sentiment. The situation has been made worse by China’s retaliatory response to U.S. tariffs — a newly announced 34% duty on American goods — further heightening fears of prolonged economic strain.
With investor nerves fraying, there’s a growing belief that this downturn could last longer than initially anticipated, reflecting deep-rooted economic unease beyond the crypto sector.
Federal Reserve Cautious Amid Market Chaos
Despite the heavy losses across both cryptocurrency and traditional markets, the U.S. Federal Reserve appears unlikely to intervene with quick monetary easing. Fed Chair Jerome Powell warned that the recent tariffs could drive inflation higher, making rapid interest rate reductions risky.
Although job numbers from the latest nonfarm payrolls report were solid, Powell emphasized a cautious approach moving forward. The Fed is balancing its inflation goals with market stability — a stance that leaves little room for immediate stimulus, frustrating investors hoping for relief.
Equities Erase Trillions as Sell-Off Spreads
The pain hasn’t been limited to the crypto sector. Global stock markets have experienced one of their sharpest losses in years. The S&P Global Broad Market Index, which encompasses both U.S. and international equities, posted a colossal $7.46 trillion drop in just two sessions.
Of that, $5.87 trillion was lost from U.S. markets, while another $1.59 trillion vanished from global stocks. Data from S&P Dow Jones Indices confirms the scale of the decline, which has erased months’ worth of gains and triggered fresh concerns about the global economic outlook.
Uncertainty Clouds Outlook as Investors Watch for Policy Signals
Bitcoin now trades nearly 30% below its record high, and sentiment within the crypto sector remains highly fragile. Investors are closely monitoring geopolitical developments and potential regulatory shifts that could influence the asset class’s next move.
Institutional investors — who have played a major role in crypto’s recent evolution — are currently reevaluating their exposure amid ongoing volatility. Many are in wait-and-see mode, holding off until clearer direction emerges from regulators and central banks.
While some remain hopeful that Bitcoin could rebound once macroeconomic conditions stabilize, others caution that large-scale gains may not be seen again in the short term.
Conclusion: A New Era of Volatility for Digital Assets
The recent crash in Bitcoin’s value highlights how tightly integrated digital assets have become with global financial trends. Once viewed as a decentralized alternative to mainstream finance, crypto now moves in lockstep with broader economic and political developments.
Until greater clarity arrives on trade, inflation, and monetary policy, continued volatility seems inevitable. Whether this is a short-lived correction or part of a longer-term reset remains uncertain. For now, investors — from retail to institutional — must navigate these uncertain waters with caution.
