Bitcoin (BTC) Price: Drops Below $78,000 Following Trump’s Tariff Announcement

TLDR

• Bitcoin has fallen below $78,000, reflecting a 6% decline as investors react to market volatility
• The cryptocurrency is now down 28% from its January all-time high of $109,000
• President Trump’s announcement of global tariffs triggered $247 million in Bitcoin liquidations
• The S&P Global Broad Market Index lost $7.46 trillion in market value following the tariff news
• Technical indicators suggest Bitcoin could fall further, potentially to support levels around $69,000 or lower

Bitcoin (BTC) has dropped below the $78,000 mark, trading at $77,840 on Sunday. This represents a 6% decline as investors respond to increased volatility across financial markets.

The leading cryptocurrency, which traded above $80,000 for much of the year, now sits 28% below its all-time high of $109,000 reached in January.

The recent price movement follows President Donald Trump’s announcement of restrictive global tariffs. This news triggered the worst decline in US equities since 2020.

Typically, Bitcoin trades alongside large tech stocks and serves as an indicator of broader market sentiment. Last week, Bitcoin held steady between $82,000 and $83,000 while stocks and gold fell.

Bitcoin Price on CoinGecko

However, the market dynamics shifted following Trump’s tariff announcement. This triggered a wave of sell-offs affecting major cryptocurrencies.

These tariffs apply to all imports and include additional duties on major trading partners. The announcement has raised concerns about a potential global trade war.

Market Impact and Liquidations

The uncertainty has prompted investors to move away from riskier assets, including cryptocurrencies. In just 24 hours since Saturday, Bitcoin experienced over $247 million in long liquidations.

Ethereum (ETH) faced similar pressure with $217 million in liquidations during the same period. Other cryptocurrencies also felt the impact, with Solana (SOL) declining approximately 12%.

The effects of the tariff announcement extend beyond crypto markets. The S&P Global Broad Market Index recorded a loss of $7.46 trillion in market value.

The US stock market alone shed $5.87 trillion. Other major global markets saw a decline of $1.59 trillion.

As market fears escalated over the weekend, Bitcoin’s price continued to fall. By early Monday, it had dropped further to around $75,000, reaching an intraday low of $74,637.

This marked a one-day decline of more than 12%. The current price places Bitcoin about 31% below its all-time high from three months ago.

Technical Analysis Points to Further Decline

Technical indicators for Bitcoin present a bearish outlook. The cryptocurrency has been following a descending resistance trend line since reaching its all-time high in January.

The Relative Strength Index (RSI) has decreased below 50, while the Moving Average Convergence/Divergence (MACD) is negative. Both are considered signs of a bearish trend.

Bitcoin’s downward movement previously led to a low of $76,600 on March 11, representing a 30% decline from its all-time high.

After a failed rally in March, the price resumed its downward trend in April. The closest horizontal support level is around $69,000.

However, some analysts suggest that support levels could be even lower. Fibonacci retracement analysis indicates potential support between $51,500 and $62,600.

Wave analysis suggests that Bitcoin completed its bullish five-wave upward movement in January. This upward trend lasted nearly 800 days.

If current market patterns continue, Bitcoin could test lower support levels in what analysts are calling wave three of a new downward movement.

As global markets prepare for what some are calling “Black Monday,” Bitcoin investors brace for potential further declines. The S&P 500 futures were already down 4% in pre-market trading.

Without crypto-specific catalysts to counter the trend, Bitcoin may continue moving in tandem with equities. Market participants worry about broader recession fears overshadowing the cryptocurrency’s performance.

These economic challenges present a difficult landscape for cryptocurrencies, which were expected to benefit from favorable regulatory developments this year.

As markets open for a new week, all eyes will be on Bitcoin’s price action and whether it can find support or continues its downward trajectory.