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Bitcoin Drops Below $78,000 as Global Markets Slide
Bitcoin’s price fell sharply Sunday evening, dropping below the $78,000 mark as the cryptocurrency market followed global stocks into a steep decline. Investors reacted to a wave of uncertainty sparked by newly announced U.S. tariffs under President Donald Trump’s administration.
According to Coin Metrics, Bitcoin was last trading at $77,730, down nearly 6% on the day. This marks one of its steepest single-day drops of the year and leaves it down 15% year-to-date. The cryptocurrency has largely stayed above the $80,000 level through early 2025, but that support broke down amid growing global economic fears.
Tariffs Fuel Recession Fears and Market Panic
The sudden drop in Bitcoin followed a brutal week on Wall Street. U.S. stocks posted their worst losses since 2020 after Trump introduced broad tariffs on all imports—a move that triggered widespread concerns of a global trade war.
Global investors quickly dumped riskier assets, including cryptocurrencies, gold, and tech stocks. The crypto market, which trades 24/7, saw heavy weekend selling as traders braced for more volatility.
In total, global markets lost an estimated $7.46 trillion in value over two sessions, with $5.87 trillion wiped out in the U.S. alone, based on data from S&P Dow Jones Indices.
Crypto Liquidations Surge as Bitcoin Falls
As Bitcoin dropped below critical support levels, it triggered a wave of long position liquidations—forced sell-offs of leveraged bets that the price would rise. In the past 24 hours alone, Bitcoin saw more than $247 million in liquidations, while Ether (ETH) recorded around $217 million, according to CoinGlass.
These liquidations added to the downward pressure, as traders scrambled to exit their positions amid sharp declines.
Altcoins Hit Even Harder
While Bitcoin’s drop was significant, other digital assets saw even steeper losses. Ethereum and Solana both dropped around 12%, reflecting broader weakness in the crypto market. The total crypto market cap fell sharply as investors looked for safety and pulled capital from all risk-on assets.
Bitcoin's 2025 Outlook Now Tied to Broader Markets
Bitcoin, often compared to high-growth tech stocks, tends to mirror broader market sentiment. In recent years, it has traded more like a traditional risk asset than a hedge. As fears of a U.S.-led recession grow, analysts believe Bitcoin may continue to move in step with the stock market, at least until a crypto-specific catalyst emerges.
Despite hopes earlier this year that crypto-friendly regulations or ETF approvals would lift prices, macro factors are currently in control.
