Bitcoin Plummets 5.6% to $77,494 Amid U.S. Recession Fears

Bitcoin experienced a significant price drop, falling to as low as $77,494 on Monday, marking a 5.6% decline. This downturn was driven by growing concerns over inflation and a potential recession in the United States, sparked by comments from President Trump over the weekend. When asked about the possibility of a recession this year, Trump did not rule it out, stating that there would be a "transition" phase as the economy adjusts to his tariffs on China, Canada, and Mexico. These tariffs, along with their recent modifications, have caused market volatility in recent weeks.

Bitcoin had slightly rebounded to $79,290 at the time of writing, but it has still seen a 14.2% decline over the past week, trading at levels not seen since before the U.S. election in November. The tariffs and the aftermath of the White House Crypto Summit have contributed to this sharp downward movement. The crypto fear and green index, which measures trader sentiment, has dropped to a multi-year low of 17, indicating 'extreme fear,' a level not seen since mid-2023.

Meanwhile, Ethereum's ether (ETH) dipped below the $2,000 mark, trading near its weakest price since November 2023, down around 8.2% over the last 24 hours. David Bailey, a prominent Bitcoin evangelist and CEO of BTC Inc., suggested that the price drop in Bitcoin might be linked to the U.S. Department of Justice's (DOJ) liquidation activities. Bailey, who attended the White House Crypto Summit, speculated that if the DOJ has been liquidating seized Bitcoin assets, it could explain the recent price action. He indicated that there might be more clarity on the matter in the coming days, following an executive order from President Trump to establish a strategic Bitcoin reserve using seized assets.

Traders are now in a wait-and-watch mode, closely monitoring macroeconomic data and decisions for signals on further positioning. The market's reaction to these developments highlights the ongoing uncertainty and volatility in the cryptocurrency space, as investors navigate through economic uncertainties and regulatory actions.

Summary: Bitcoin's price plummeted to $77,494 on Monday, a 5.6% drop, due to inflation concerns and potential recession fears in the U.S. sparked by President Trump