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Bitcoin (BTC) has fallen below the $78,000 mark on Sunday, trading at $77,840, reflecting a 6% decline as investors react to significant volatility in broader financial markets. This drop follows the worst decline in US equities since 2020, triggered by President Donald Trump’s announcement of restrictive global tariffs.
The flagship cryptocurrency, which traded above $80,000 for much of the year, is now down 28% from its all-time high (ATH) of $109,000 in January, which was also curiously boosted by Trump’s election victory last November.
Trump’s Tariffs Trigger $247 Million In Bitcoin Liquidations
Typically, Bitcoin trades in tandem with large tech stocks and is viewed by many traders as a leading indicator of market sentiment. Interestingly, last week, Bitcoin held steady between $82,000 and $83,000 even as stocks and gold tumbled.
However, CNBC attributes the recent announcement by President Donald Trump of tariffs to a shift in investor sentiment, causing a wave of sell-offs in the crypto market affecting the largest cryptocurrencies.
The tariffs, which apply to all imports and include additional duties on major trading partners, have raised fears of a potential global trade war. This uncertainty has prompted investors to divest from riskier assets, including cryptocurrencies.
In the wake of these developments affecting the entire crypto ecosystem, the leading cryptocurrency experienced over $247 million in long liquidations in just 24 hours since Saturday, with Ethereum (ETH) facing $217 million in similar liquidations during the same time frame.
Major Cryptos Plunge Amid Global Trade War Fears
Over the weekend, as fears of further market carnage loomed, investors rushed to sell their cryptocurrency holdings. The anxiety surrounding Trump’s tariffs has not only affected Bitcoin but has also reverberated through the entire cryptocurrency ecosystem, with other coins Solana (SOL) experiencing declines of approximately 12%.
The ramifications of the tariff announcement have been felt across global financial markets. In the wake of the news, the S&P Global Broad Market Index recorded a staggering loss of $7.46 trillion in market value, with the U.S. stock market alone shedding $5.87 trillion. The losses extend beyond American markets, as other major global markets saw a decline of $1.59 trillion.
As Bitcoin continues to reflect broader market trends, it has now seen a 15% drop in 2025. Analysts suggest that absent any significant crypto-specific catalysts, Bitcoin will likely continue to move in tandem with equities, overshadowed by fears of a global recession.
These economic uncertainties present a challenging landscape for cryptocurrencies, which were initially expected to benefit from favorable regulatory developments this year.
Featured image from DALL-E, chart from TradingView.com
