The price of Bitcoin experienced a decline of approximately 7 percent on Sunday amidst the ongoing global financial market instability stemming from US President Donald Trump’s tariff announcements.
The leading cryptocurrency fell to around $77,500 within 24 hours, after trading above $80,000 for most of the year, according to data from CoinMarketCap.
Other cryptocurrencies, including Ethereum and Solana, faced even steeper declines, dropping by about 12 percent in the last 24 hours of trading.
The entire crypto market also saw a decrease of around 7 percent during the same timeframe.
Since reaching a record high of about $110,000 in January, Bitcoin has dropped in value by nearly 28 percent.
The crypto market initially surged, gaining over half a trillion dollars in value, following Mr. Trump’s announcement of a new strategic reserve last month.
However, it began to decline last week as the US President reaffirmed his commitment to implementing his strict tariffs, stating he would adhere to his policies.
The drop in cryptocurrency prices triggered a wave of liquidations, with Bitcoin experiencing $250 million in long liquidations over the past day, according to CoinGlass.
Investors appeared to be bracing for further global market fluctuations after Mr. Trump’s tariffs heightened the risk of a recession in the US, in particular.
The Dow Jones Industrial Average futures fell by over 4 percent late on Sunday, while S&P 500 futures declined nearly 5 percent and Nasdaq 100 futures dropped 5.3 percent.
Analysts from JPMorgan have raised the recession risk to 60 percent following the President’s announcement of at least a 10 percent blanket tariff on nearly all countries last week, with China responding by announcing a retaliatory 34 percent tariff on American goods.
“We have massive financial deficits with China and the EU and many others. The only way to resolve this issue is through tariffs, which are now bringing tens of billions of dollars into the US,” Mr. Trump stated on his social media platform Truth Social. “These tariffs are already in effect and are a magnificent sight to behold.”
The declines in global stock markets are estimated to have eradicated approximately $7 trillion in value since the tariffs were announced on April 2.
Crypto analysts indicated that Bitcoin’s price is expected to reflect movements in global stock markets amid the prevailing economic uncertainty, overshadowing any potential gains it might derive from the regulatory leniency of the Trump administration.
