Bitcoin Drops 6% to $77,730.03 as Trump Tariffs Spark Global Sell-Off

Bitcoin experienced a significant drop on Sunday evening, falling below the $78,000 mark. This decline came as investors prepared for increased volatility in financial markets following the implementation of President Donald Trump's restrictive global tariffs. The tariffs, which include duties on all imports and additional custom tariffs for major trading partners, have sparked concerns about a potential global trade war and the possibility of a U.S. recession. These fears have led to a sell-off in global financial markets, with investors dumping their holdings of cryptocurrencies over the weekend.

The price of Bitcoin was last recorded at $77,730.03, representing a 6% decrease from its previous levels. This drop marks a notable shift from its performance earlier in the year, where it had traded above $80,000 for most of the time, with only brief periods of volatility causing it to dip below this threshold. The current price is 28% lower than its January all-time high. Bitcoin, often seen as a leading indicator of market sentiment, had previously bucked the broader market meltdown by holding steady between $82,000 and $83,000 and even rising as stocks and gold prices fell.

Other cryptocurrencies also suffered significant losses overnight. Ether and the token tied to Solana both tumbled by approximately 12%. The decline in Bitcoin's price triggered a wave of long liquidations, as traders who had bet on an increase in its price were forced to sell their assets to cover their losses. This liquidation wave has been substantial, with Bitcoin seeing more than $247 million in long liquidations in the past 24 hours. Ether, meanwhile, saw $217 million in long liquidations during the same period.

The global financial markets have been rattled by the announcement of Trump's tariffs, which have raised fears of a global recession. In the two sessions following the tariff announcement, global stocks wiped out $7.46 trillion in market value based on the market cap of the S&P Global Broad Market Index. This figure includes $5.87 trillion lost in the U.S. stock market and another $1.59 trillion loss in market value in other major global markets. The far-reaching impact of the tariffs has sent markets reeling worldwide, with investors selling off riskier assets in anticipation of further market turmoil.

Bitcoin has experienced a 15% decline in 2025 and is expected to continue moving in tandem with equities as global recession fears overshadow any regulatory tailwinds that crypto was expected to benefit from this year. The cryptocurrency market's volatility has been exacerbated by the uncertainty surrounding the global economic outlook, with investors remaining cautious about the potential impact of the tariffs on the broader economy.