Crypto Collapse: Bitcoin Drops Amid Global Economic Fears

After U.S. stocks suffered their largest drop since 2020 due to the implementation of President Donald Trump’s restrictive international tariffs, investors braced for further financial market turmoil, and Bitcoin fell below the $78,000 mark.

According to Coin Metrics, the price of bitcoin was recently down 6% at $77,730.03, after spending the majority of this year above $80,000, with a few short dips below due to recent volatility. It is 28% below its peak from January.

Last week, the flagship cryptocurrency defied the general market disaster by holding between $82,000 and $83,000 and gaining to end the week as equities and even gold fell. Normally, it trades like a giant tech stock and is frequently seen by traders as a leading predictor of market sentiment.

Overnight, multiple cryptocurrencies suffered more losses. The Solana-related token and ether both fell by around 12%.

A wave of long liquidations resulted from Bitcoin’s decline, as traders who had bet on a rise in the price were compelled to liquidate their holdings to offset their losses. According to CoinGlass, long liquidations of bitcoin have generated almost $247 million in the last day. In the same period, Ether had lengthy liquidations totaling $217 million.

After Trump’s retaliatory tariffs stoked fears of a worldwide recession and prompted investors to sell any risk, nervous investors liquidated their holdings of cryptocurrencies, which trade around the clock, over the weekend in anticipation of further carnage.

In addition to customs duties for significant trading partners, the duties on all imports have raised concerns about a global trade war that may push the United States into a recession. International markets were rocked by growing worries about the tariffs’ far-reaching effects.

S&P Dow Jones Indices reports that global stocks lost $7.46 trillion in market value in the two sessions after the tariff announcement, based on the market capitalization of the S&P Global Broad Market Index.

During those two sessions, the U.S. stock market lost $5.87 trillion, while other major international markets saw a further $1.59 trillion decline in market value.

Bitcoin has dropped 15% in 2025 and, barring a crypto-specific event, is predicted to keep rising in tandem with stocks as concerns about the global recession outweigh any legal tailwinds that could have helped the cryptocurrency this year.