NEW YORK— Bitcoin slipped into a freefall this weekend, dragging much of the crypto market down with it, as global economic fears continue to build. The world’s most-watched digital asset fell below the $80,000 mark late Sunday, hitting roughly $79,000, a 5% drop that mirrors deepening losses in U.S. stock index futures. This was caused by heightened tensions around a potential trade war triggered by retaliatory tariffs from China following sweeping tariff announcements by the current administration.
By early Monday, Bitcoin had slumped further to $76,978, a 6.7% decline over 24 hours, according to CoinDesk. Major altcoins like XRP and Ether fared even worse. XRP plummeted 14% to $1.78, while Ether dropped to $1,507, down more than 11%. Solana, Cardano, and Dogecoin also posted double-digit losses, underscoring the fragility of the broader crypto market.
Adding pressure to the sell-off is the massive wave of $250 million in long liquidations over the past 24 hours—one of the highest since March 7. In simpler terms, traders who bet on rising prices were forced to sell at a loss as prices tumbled, amplifying the downtrend.
And if that wasn’t enough, Bitcoin’s technical chart is now flashing red flags. The dreaded “death cross”—a bearish pattern where the 50-day moving average dips below the 200-day moving average—has emerged. This is usually taken as a sign of further downside risk. The crypto has already dropped 15% year to date, despite having more than doubled in 2024 amid optimism around regulatory clarity and institutional interest.
On the flip side, Bitcoin appears to be holding up better than both altcoins and traditional equities. While it has dropped about 6% from last week’s $83,000 level, the S&P 500 and Nasdaq Composite fell 9% and 10%, respectively, last week alone. Analysts at 22V Research note that Bitcoin’s role as “digital gold” may be strengthening as it begins to decouple from the chaos of traditional markets.
Eric Chen, CEO of Injective, explains this resilience by pointing to the shift in Bitcoin’s investor base: “Post-ETF, demand now comes from retirement accounts, macro funds, and corporate treasuries like MSTR and GME.” That long-term positioning could give Bitcoin a floor—even if volatility persists.
To successfully navigate the cryptocurrency market, you can follow three key steps:
- Educate yourself: Learn about blockchain, cryptocurrencies, and trading strategies.
- Choose a reliable exchange: Select a trustworthy exchange like Coinbase, Binance, or Kraken. Download on the iOS or Android app.
- Develop a trading strategy: Define your risk tolerance, investment goals, and market analysis approach.
In turbulent markets like this, it’s tempting to be reactive. But seasoned investors know that sharp pullbacks are part of the terrain. If you’re in crypto for the long haul, zoom out: Bitcoin is still significantly up year-on-year. What matters now is conviction. Stay grounded, stay informed. Whether you view Bitcoin as digital gold or a high-risk tech bet, your strategy should align with your belief.
