Significant losses are being felt across the cryptocurrency markets as Bitcoin's price dipped below $75,000 for the first time since November 7, 2024. Data from CoinMarketCap indicates that the cryptocurrency is currently trading at $74,441, marking a decline of over 10% in just the last 24 hours. This downturn comes amid growing investor anxiety regarding market volatility, particularly following the poor performance of U.S. stocks, which have not seen such lows since 2020 after President Donald Trump enforced stringent global tariffs.
Bitcoin, which had been trading above the $80,000 mark for most of this year, has now fallen about 28% from its all-time high recorded in January. The total market value of cryptocurrencies has also taken a hit, plummeting to approximately $2.54 trillion according to CoinGecko. Historically, Bitcoin has traded similarly to shares of major tech companies and is often seen as a key indicator of market sentiment. However, in recent weeks, it has deviated from this trend, maintaining a trading range between $82,000 and $83,000 before a sudden downturn.
Other cryptocurrencies have experienced even steeper declines, with Ethereum (Ether) and assets linked to the Solana platform both dropping around 12%. This widespread decline in cryptocurrency values is attributed to a wave of liquidations, where traders who had bet on rising prices were forced to sell their assets to mitigate losses. Over the past 24 hours, Bitcoin saw liquidations exceeding $247 million, while Ether faced liquidations amounting to $217 million, according to data from CoinGlass.
The market's reaction is largely a response to the fears of a global recession triggered by Trump's newly imposed tariffs, which cover all imports and include specific tariffs targeting major trading partners. These tariffs have raised concerns about a potential global trade war that could push the U.S. economy into a recession. As a result, investors are increasingly selling off high-risk assets, including cryptocurrencies, which are traded around the clock.
In the days following the announcement of these tariffs, approximately $7.46 trillion was wiped from the global stock market's value, based on S&P Global data. This figure includes a staggering loss of $5.87 trillion in the U.S. stock market alone, alongside $1.59 trillion in other global markets. Since the start of 2025, Bitcoin's price has retreated by 15%, reflecting the growing unease among investors.
Despite the current downturn, Bitcoin had previously shown resilience, even rising at the end of the previous week while traditional markets were seeing losses. Reports from CNBC noted that Bitcoin had maintained its trading levels while stocks and gold were faltering, indicating a complex relationship between these markets.
In summary, the cryptocurrency landscape is currently facing significant challenges. Investors are navigating a tumultuous environment, influenced by broader economic policies and market trends. As Bitcoin's price continues to fluctuate, the overall sentiment in the market remains cautious, with many keeping a close eye on potential further developments.
