Bitcoin Sinks Below $78K Amid New U.S. Tariffs, Wiping Out Billions in Value

Bitcoin took a sharp dive on Monday morning, falling to $77,158.52 as of 11:30 AM WAT, according to price data from Block Chain.

The sudden slump follows a wave of newly imposed trade tariffs by President Donald Trump on all imports to the United States, a move that has sent shockwaves through global markets—including crypto.

The leading digital asset, which opened the year at $94,419.76, has now shed 18.28% of its value, translating to an eye-watering loss of approximately $291 billion in market capitalization.

This marks one of the most significant downturns in Bitcoin’s recent history and underscores how deeply intertwined crypto markets have become with broader economic and geopolitical developments.

To put things into perspective, Bitcoin is now trading 6.65% below the $83,504.80 mark it held at the close of trading on Saturday, April 5, 2025. This downturn also means the cryptocurrency is on pace for its worst first-quarter performance since Q1 2018, according to data from Dow Jones Market Insights.

READ ALSO: Southampton Sack Ivan Juric After Record-Early Relegation from the Premier League

The irony isn’t lost on investors who had cheered Trump’s re-election last year. At the time, Bitcoin rallied strongly on expectations of a crypto-friendly administration. Trump had positioned himself as a champion of digital currencies, even promising to make the United States a global hub for Bitcoin innovation.

But optimism has quickly faded as escalating trade tensions, combined with mounting fears of a global economic slowdown, have spooked investors. Bitcoin, often touted as a hedge against fiat instability, has instead become a casualty of broader uncertainty.

Still, not everyone is ready to count Bitcoin out just yet. “Despite near-term volatility, uncertainty is decreasing, and institutional buying pressure is returning,” said Valentin Fourner, a senior analyst at BRN. “With key catalysts aligning, we expect Bitcoin to rebuild momentum and make another attempt at the $90,000 level in the near future.”