Bitcoin and other major cryptocurrencies experienced a significant downturn on Tuesday as concerns over the U.S. economy and escalating trade tensions rattled investor confidence.
The global crypto market saw a steep decline, with Bitcoin dropping 3.2% to $79,937, after hitting a low of $76,624. Ethereum also took a substantial hit, falling 7.5% to $1,911—marking its lowest point in months.
The overall cryptocurrency market capitalization fell by 4.3% to $2.6 trillion, according to The Economist. Other major cryptocurrencies followed suit, with Solana, XRP, Cardano, and Dogecoin all recording losses. Dogecoin saw the biggest drop, plunging 8.5% in a single day.
Investor sentiment took a hit after former U.S. President Donald Trump made ambiguous remarks during a Fox News interview, referencing a “period of transition” but stopping short of clarifying whether his tariff policies could trigger a recession.
This uncertainty sent shockwaves across multiple markets, leading to losses in cryptocurrencies, stocks, and the U.S. dollar. At the same time, U.S. Treasury yields declined, further adding to the market unease.
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Market analysts attribute the downturn to macroeconomic pressures, particularly concerns about inflation, interest rates, and economic growth.
“The crypto market is undergoing a major pullback, with Bitcoin slipping below $80,000 and Ethereum hitting a 16-month low of around $1,800,” said Avinash Shekhar, Co-Founder & CEO of Pi42. “Fears of an impending recession and broader market sell-offs are exacerbating the decline.”
Despite the bearish trend, upcoming macroeconomic data could determine the next moves in the market. The Job Openings and Labor Turnover Survey (JOLTS) data, set to be released soon, could play a crucial role in shaping investor sentiment.
“A positive jobs report could help Bitcoin reclaim the $84,000 mark,” noted Edul Patel, CEO of Mudrex. However, much will depend on whether Bitcoin can maintain key support levels.
Bitcoin’s market capitalization has now fallen to $1.585 trillion, maintaining a dominance of 61.04% in the crypto market. Meanwhile, trading volume surged 53.14% to $58.13 billion, reflecting heightened activity amid market uncertainty.
“The key test for Bitcoin is whether it can reclaim and hold $80,000—this will be crucial for stabilizing the broader crypto market,” added Vikram Subburaj, CEO of Giottus.
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