The impact of the tariffs in the US has been far-reaching, and the world of cryptocurrencies is not exempt. After sinking steadily over the last few days, Bitcoin’s value dropped below the $78,000 level on Sunday evening. Bitcoin has remained a leader and goal post in the crypto market for years now, and its performance is often seen as a predictor of an upcoming crypto market crash.
After a 2% rise to $83,959.19 on Friday, Bitcoin’s fall below $78,000 came as investors were already anticipating instability in the financial market following the largest decline in U.S. equities since 2020, triggered by the implementation of restrictive global tariffs. The 6% decrease to $77,730.03, after generally staying above $80,000 this year, shows that Bitcoin is also sensing the trade war’s impact quite intensely.
Despite the pro-crypto changes with the new administration, Bitcoin is dropping below investor expectations. (Image: Pexels)
Amidst Significant Market Decline, Bitcoin Drops to 77K
After holding up decently against a rush towards sell-offs among investors last week, over the weekend, Bitcoin’s value dropped below $78,000. This dip in value caused investors to worry over financial market volatility as a result of U.S. equity losses linked to the new global tariffs and resulted in over $247 million in long liquidations in the last 24 hours.
In November, Bitcoin’s value leaped forward over the $89,000 mark, suggesting we were set to see a resurgence of the crypto market. By December, Bitcoin surged by more than 45% and hit $100,000, crossing a lucrative milestone that was 15 years in the making. In January, Bitcoin nearly crossed the $110,000 threshold on inauguration day.
The new administration’s more positive take on the cryptomarket had suggested that the financial institution was set to be one of the biggest winners following the elections, however, extraneous factors since that point have led to an undeniable decline in value and investor confidence.
Bitcoin is down by 15% in April 2025, and the carnage is expected to continue. Unfortunately, the entire global cryptocurrency market is suffering from similar downturns.
As Bitcoin Drops, Is the Crypto Market Crashing?
Macroeconomic anxieties have been hitting investors hard, particularly the fears over rising interest rates. This has played a significant role in the drop of the global cryptocurrency market, causing its total capitalization to fall by 7.79% to $2.46 trillion in the past 24 hours. This decline has been highlighted by a sharp sell-off in U.S. equities, which is a consequence of the recently implemented global tariffs. Investors are now afraid of irrecoverable losses later down the line and are choosing to liquidate in anticipation of incoming change.
According to Coinglass, the cryptomarket witnessed a substantial $985.78 million in liquidations, reflecting the Bitcoin selloffs. Ethereum (ETH) has fallen to $1,551.52, marking a 14.19% decrease; XRP is trading at $1.81, which is a 14.52% drop; Binance Coin (BNB) is down 6.51; and SOL is falling by 13.96%.
The downturn has pushed sentiments into “extreme fear,” as suggested by the Fear & Greed Index‘s drop to 17. For those who can afford the liability, it may be a good opportunity to buy into the market and hold ground until the market uncertainties are reversed, but few see this as an opportunity. With the Bitcoin weekend crash, any investment at this juncture would be highly speculative.
Despite the Bitcoin drop in numbers and the consequent liquidation efforts, the cryptocurrency still remains valuable, so the cryptocurrency market has not witnessed a complete crash yet. Still, the crypto market rout appears to be here to stay.
Why Is Bitcoin’s Value Falling?
Fears over a global recession have been building up over the last few months. Duties on imports and trade tariffs on major trading partners have resulted in a large-scale trade war, and this is impacting the value of Bitcoin and other cryptocurrencies. Despite the administration’s positive and lenient regulatory approach to the crypto market, Bitcoin has still plunged in April 2025 and is expected to fall lower and match the overall economic uncertainties that currently prevail.
According to CNBC, in the two trading sessions immediately after the tariff announcements, global stock markets, as measured by the S&P Global Broad Market Index, saw a substantial $7.46 trillion in value disappear. This included a $5.87 trillion loss in the U.S. stock market and an additional $1.59 trillion decline in other major global markets.
The stock market losses paired with the drop in Bitcoin suggest instability in the global market, making investments in any category very risky at the moment. The Bitcoin drop in value may not be permanent, but it is starting to trend downwards. It is best to evaluate the overall economic climate and then plan out cautious investments that keep the Bitcoin weekend crash and overall crypto market changes in mind.
Do you think the Bitcoin drop in April 2025 is just a temporary drop, or do you believe it is another sign of global recession? Let us know. Subscribe to Technowize so you never have to miss out on groundbreaking news again.
