Bitcoin has dropped to its lowest point, nearly negating all gains made since the election, as rising trade tensions incite global market anxiety.
During the early hours in Asia on Monday, Bitcoin’s price plummeted to $74,500, reflecting a 6.5% decline in the last 24 hours and over 5.8% for the week, according to CoinGecko data.
Currently, Bitcoin has slightly recovered, hovering around $77,179, yet analysts caution against the risk of further declines.
This drop follows a chaotic weekend sparked by President Donald Trump’s sweeping tariff announcement, set to be enforced on April 9.
Trump introduced a baseline 10% tariff on all imports, with increased rates for select countries, including a 34% tariff on Chinese goods and a 20% tariff on European Union products.
In retaliation, China imposed 34% tariffs on all U.S. exports, leading to the steepest single-day drop in China’s stock market since 2008.
“Markets are in turmoil as the global trade conflict escalates,” QCP Capital noted in a report on Monday. “While U.S. equities faced significant pressure last week, BTC weathered the storm over the weekend. Yet, that strength was short-lived.”
“With only two days until the implementation of the increased tariffs, the global economy hangs on the brink of a significant economic conflict,” QCP stated.
The repercussions have been severe across risk assets. In the last 24 hours, over $1.41 million in crypto positions were liquidated, with BTC and ETH taking the biggest hits, according to Coinglass data.
“At first glance, it might appear that cryptocurrency is beginning to diverge from the overall trend,” Tracy Jin, COO of crypto exchange MEXC, mentioned to Decrypt. “On the evening of April 3–4, Bitcoin seemed more stable compared to the S&P 500 and commodity assets, sparking discussions about crypto as a potential defensive asset amid rising geopolitical and trade tensions.”
Jin cautioned against misinterpreting Bitcoin’s initial stability, pointing out that the crypto market had “merely outpaced the stock market,” with most sales occurring “from January to March,” well before equities began to decline.
She added that Bitcoin now seems to act as “a leading indicator” of macroeconomic pressures.
“Its price has already signaled the adverse effects of trade disputes, especially related to the U.S. tariff rhetoric aimed at China,” Jin noted.
Meanwhile, Altan Tutar, CEO and co-founder of the Global Liquidity Marketplace MoreMarkets, emphasized that Bitcoin’s identity as an asset is being redefined in real time.
“Bitcoin is at a crucial juncture,” he stated to Decrypt. “With increasing market volatility and tariffs re-emerging, 2025 will be a definitive test: Will Bitcoin act more like a tech stock or resemble a safe-haven asset like gold? Thus far, we’re witnessing traits of both.”
Tutar added that although cryptocurrency functions in a digital layer, insulated from tariffs, the pressures of costs are still rising.
“Increasing hardware expenses could make mining and validation more costly,” he remarked. “Over time, Bitcoin may transform into a new type of macro asset influenced by both financial markets and geopolitical tensions.”
From a technical standpoint, Jin signaled that BTC is at “critical levels.”
“Resistance beyond $80,000 could serve as an essential indicator for institutional investors,” she advised. “A downward breakout below $71,000 could initiate a cascade of liquidations targeting the $65,000 mark.”
As the market awaits clearer guidance from policymakers, Jin cautioned that a deteriorating political environment might also spill into regulatory measures.
“Increased scrutiny, particularly in G7 nations, alongside efforts to prevent sanctions evasion could hinder institutional uptake of cryptocurrencies,” she said.
Still, Jin is optimistic, believing that Bitcoin’s resilience could be influential, suggesting that “if BTC maintains its position amid great volatility,” it could change perspectives “even among more cautious financial entities.”
Edited by Stacy Elliott.
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