Bitcoin drops Sunday evening as cryptocurrencies join global market rout
Bitcoin has experienced a significant drop below the $78,000 level as investors brace themselves for more financial market volatility. This comes after U.S. equities suffered their worst decline since 2020 due to President Donald Trump’s restrictive global tariffs. The price of bitcoin is currently at $77,730.03, down 6% from its recent highs above $80,000. It is now 28% below its January all-time high.
Bitcoin is often seen as a leading indicator of market sentiment, trading like a big tech stock. Last week, it defied the broader market meltdown, holding steady between $82,000 and $83,000 while stocks and even gold tumbled. However, other cryptocurrencies such as Ether and Solana saw even bigger losses, dropping about 12% each.
The downward movement in bitcoin triggered a wave of long liquidations as traders who were betting on an increase in its price were forced to sell their assets to cover their losses. In the past 24 hours, bitcoin has seen over $247 million in long liquidations, while Ether saw $217 million in the same period.
Investors have been rattled by the recent market turmoil, leading to a sell-off of cryptocurrencies over the weekend. Trump’s retaliatory tariffs have raised fears of a global recession, causing investors to flee risky assets. The tariffs, along with custom duties on major trading partners, have sparked concerns about a potential global trade war that could push the U.S. into a recession.
The global stock market has suffered significant losses in the two sessions following the tariff announcement, with $7.46 trillion in market value wiped out. This includes $5.87 trillion lost in the U.S. stock market and another $1.59 trillion in other major global markets.
Bitcoin is down 15% in 2025 and is expected to continue moving in tandem with equities amid global recession fears. Without a specific catalyst in the crypto market, it is likely to be influenced by broader market trends. The regulatory tailwinds that were expected to benefit crypto this year have been overshadowed by the current economic uncertainty.
