Bitcoin (BTC) plunged below the critical $78,000 level on Sunday, with the leading cryptocurrency trading at $77,840 – marking a sharp 6% decline as global markets reel from President Trump’s sweeping new tariff announcement. This latest price action comes amid broader market turmoil that has erased over $160 billion in crypto market value during the weekend selloff.
The flagship cryptocurrency, which maintained prices above $80,000 through most of 2025, has now declined 28% from its January all-time high of $109,000. Trump’s recent trade policies have triggered unprecedented volatility across global financial markets.
Massive Liquidations Hit Crypto Markets
The immediate impact of the tariff announcement has been severe, with Bitcoin experiencing over $247 million in long liquidations within just 24 hours. Ethereum wasn’t spared either, facing $217 million in similar liquidations during the same period.
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Global Markets Face Historic Losses
The ramifications extend far beyond crypto markets. The S&P Global Broad Market Index has recorded staggering losses of $7.46 trillion, while the U.S. stock market alone shed $5.87 trillion. International markets weren’t spared, with global markets experiencing a $1.59 trillion decline.
What This Means for Crypto Investors
As market indicators signal potential bearish trends, analysts suggest Bitcoin will likely continue moving in tandem with traditional equities. The cryptocurrency market, initially expected to benefit from favorable regulatory developments this year, now faces significant headwinds from macroeconomic uncertainties.
Key Support Levels to Watch
Technical analysts identify several critical support levels:
- $77,000: Immediate support level
- $75,500: Secondary support zone
- $72,000: Major psychological support
FAQ Section
Why is Bitcoin falling with stocks?
Bitcoin has increasingly correlated with traditional risk assets, particularly during periods of macro uncertainty. The current decline reflects broader market concerns about global trade tensions.
Will Bitcoin recover from this dip?
Historical patterns suggest Bitcoin typically recovers from macro-driven selloffs, though timing varies. Investors should monitor global trade developments and market sentiment for recovery signals.
What’s the outlook for Bitcoin in 2025?
Despite current volatility, many analysts maintain bullish long-term forecasts, with some targeting $150,000-$175,000 by year-end, though near-term uncertainty remains high.