The price of Bitcoin has just collapsed below $80,000. The queen of cryptocurrencies even briefly dipped below the $75,000 threshold. Bitcoin has been declining for weeks, but the movement accelerated this weekend. This is "a price level not seen since Trump's victory in the US presidential election," said Simon Peters, market analyst at eToro, in a response to 01Net. The record high of $109,000 reached during Donald Trump's inauguration continues to slip away.
As always, Bitcoin has dragged the entire crypto market down with it. In the space of 24 hours, exchanges recorded $1.3 billion in liquidations. On Sunday, liquidations approached $900 million, according to CoinGlass data. The overall valuation of the industry has fallen back below $2.4 trillion. The decline is particularly sharp in altcoins, starting with Ether. For the first time since 2023, the Ethereum blockchain crypto fell below $1,500. Ripple's XRP, Solana's SOL, and Dogecoin also suffered.
Panic in the stock markets
Behind this new bearish wave are Donald Trump's tariffs. Back in the Oval Office, the Republican decided to impose a universal 10% tax rate on all products imported into the United States. It provides for higher rates for certain countries, including 20% for the European Union. These strong measures, effective since April 5, aim to reduce the United States' trade deficit.
These new taxes have sent panic through the stock markets. The Hong Kong stock market, for example, collapsed by more than 12% on Monday, April 7, 2025. Singapore and Tokyo recorded a drop of 7%, compared to 6% in Sydney and 5% in Seoul. American financial markets also suffered in the wake of last week's announcement. Giants like Microsoft, Tesla, and Apple have lost some of their stock market value.
Scott Bessent, the US Treasury Secretary, said that "more than 50 countries have approached the government about reducing their trade barriers, tariffs, and ending currency manipulation." Unmoved, Donald Trump believes that the "customs tariffs will bring in tens of billions of dollars for the United States" and points to "massive trade deficits with China, the European Union, and many others.".
Bitcoin in the wake of the Stock Market
Bitcoin, as a risky asset, has not escaped the global financial panic. Investors have preferred to withdraw their stakes to bet on less risky assets, such as gold, which is still considered as a universal safe haven. Last week, however, gold was on the decline ahead of the tariffs coming into effect, while Bitcoin seemed unaffected.
The cryptocurrency was finally caught up in the financial bloodbath. In these complicated conditions, many analysts fear that Bitcoin will continue to lose value, and eventually fall back below $60,000...
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