Bitcoin had its second biggest one-day drop on Sunday evening, down as much as 4%, closing at $78,835.07. This bust tells a larger story that is affecting all cryptocurrencies. In short, they’re game planning for the growing worldwide uncertainty that’s engulfing our financial markets. For the past majority of this year, Bitcoin stood gallantly above a price of over $80,000. This level has recently fallen below the $79,000 level, increasing concerns among investors.
Overall, Bitcoin’s value has taken a nosedive in recent weeks. This drop comes on the heels of a ghastly week for U.S. equities — their largest weekly drop since March 2020. Experts witness this drop and blame it on the implementation of punishing tariffs worldwide, initiated by former President Donald Trump. These actions, in turn, have sparked fears of a global trade war. In retrospect, after the announcement, the U.S. stock market plummeted by nearly $5.87 trillion in just two days.
Besides Bitcoin’s woes, the larger cryptocurrency market has seen a massive amount of liquidations. CoinGlass subsequently reported that Bitcoin saw over $181 million in long liquidations over the past 24 hours. In like manner, Ether experienced about $188 million in long liquidations during the same period. Other cryptocurrencies have taken even steeper falls overnight, deepening investor jitters.
Since the beginning of 2025, Bitcoin is down over 15%. It now hovers about 34% below its all-time high from January. Fears of a new global recession have dominated headlines. Consequently, cryptocurrencies are losing many of the regulatory tailwinds they were supposed to receive this year. Market investors are still hesitant though, as a massive economic cloud continues to hang over the property market.
Market analysts are strongly encouraging the investment world to prepare for a new era of consolidated financial volatility. The combination of tariff-related concerns and the potential for escalating trade tensions has sent shockwaves through various sectors, including cryptocurrencies. With traders continuing to wade into this stormy sea, all eyes are on the news that can sway market sentiment.