Bitcoin Dips Below $77,000 as Cryptocurrencies Join Global Market Decline

Bitcoin has fallen below the $80,000 mark as the broader cryptocurrency market reacts to rising global financial instability, CNBC reports.

The sharp drop comes as US equities experienced their most significant decline since 2020, driven by President Donald Trump’s imposition of aggressive tariffs that have raised concerns about a potential global recession.

On Monday, Bitcoin was down 4%, trading at $76,353.71, according to Coin Metrics. This represents a notable decrease from its high of nearly $85,000 on Friday and marks a nearly 30% drop from its all-time high in January. Other cryptocurrencies also experienced losses, with Ether and Solana’s tokens extending their two-day declines, falling 15% and 13%, respectively.

The sharp downturn in Bitcoin’s price prompted widespread liquidations, with traders who had bet on the cryptocurrency’s price increase being forced to sell their holdings to cover losses. In the past 24 hours, Bitcoin experienced over $412 million in long liquidations, according to CoinGlass. Ether, too, saw significant liquidations, amounting to $348 million in the same period.

The sell-off in cryptocurrencies comes amid heightened market volatility, as investors reacted to the broader financial turmoil caused by the global tariff disputes. Will Clemente, an independent investor and former cofounder of Reflexivity Research, noted that Bitcoin’s performance is closely tied to overall market conditions. He explained that, while Bitcoin may be nearing the end of its correction, the growing uncertainty in global markets could continue to put downward pressure on the cryptocurrency as investors liquidate assets to mitigate risks.

Despite Bitcoin’s recent instability, Clemente emphasized that the cryptocurrency has often been viewed as a “risk-on” asset, meaning it tends to perform well when investors are optimistic about market conditions. As stocks and other risk assets struggle, Bitcoin has often mirrored these movements, highlighting its susceptibility to broader economic factors. Clemente added that should equity markets stabilize, Bitcoin is likely to follow suit.

Bitcoin has generally remained above the $80,000 level this year, with brief fluctuations lower amid heightened market volatility. Last week, despite the broader market downturn, Bitcoin saw some relative strength, which Clemente attributed to Bitcoin lagging behind equities.

Bitcoin’s price has now dropped 15% in 2025, and analysts suggest that unless a specific catalyst emerges for the cryptocurrency, it will likely continue to move in tandem with the stock market as concerns over a global recession persist. According to market strategist Joel Kruger, Bitcoin’s performance is expected to remain closely tied to the broader economic environment, especially given the high valuations of assets across various sectors.

With the current market turmoil, Bitcoin is now testing the critical $74,000 level, which represents its peak from 2024. Some analysts, including Kruger, suggest that this level could act as a potential low for the cryptocurrency, while others, such as Tracy Jin, the chief operating officer of the crypto exchange MEXC, believe that Bitcoin could fall as low as $68,000.

Despite the short-term uncertainty, some market observers remain optimistic about Bitcoin’s long-term prospects. Clemente pointed out that trends like deglobalization and rising geopolitical tensions may ultimately benefit Bitcoin as a “decentralized, open-source, neutral, scarce reserve asset.” Similarly, Geoff Kendrick, head of digital assets at Standard Chartered, suggested that Bitcoin could serve as a hedge against risks posed by tariffs and US isolationist policies, which he believes could lead to an increased reliance on Bitcoin as an alternative to fiat currencies.