Bitcoin and other major cryptocurrencies saw significant declines on Tuesday, as concerns over the US economy and escalating trade tensions weighed heavily on investor sentiment.
Bitcoin fell by 3.2%, dropping to $79,937 after hitting a low of $76,624. Ethereum took a sharp hit, plunging 7.5% to $1,911. The global cryptocurrency market cap also fell by 4.3%, reaching $2.6 trillion, according to The Economist.
Other major cryptocurrencies, including Solana, XRP, Cardano, and Dogecoin, also experienced losses, with Dogecoin suffering an 8.5% drop.
Investor confidence was shaken after former US President Donald Trump, in a Fox News interview, referred to a “period of transition” without providing clarity on whether his tariff policies could push the economy into a recession. His comments contributed to declines in cryptocurrencies, stocks, and the US dollar, while Treasury yields also dropped.
“The crypto market is undergoing a major downturn, with Bitcoin falling below $80,000 and Ethereum hitting a 16-month low around $1,800,” said Avinash Shekhar, Co-Founder & CEO of Pi42. “Fears of an impending recession and broader market sell-offs are fueling this pullback.”
Macroeconomic factors such as inflation and rising interest rates continue to drive market volatility.
“The upcoming Job Openings and Labor Turnover data will be crucial for bullish sentiment to gain traction,” said Edul Patel, CEO of Mudrex. “A positive outcome could help Bitcoin reclaim the $84,000 level.”
Bitcoin’s market capitalization fell to $1.585 trillion, maintaining a dominance of 61.04%. Trading volume surged 53.14% to $58.13 billion.
“Bitcoin’s ability to reclaim and sustain the $80,000 mark is critical for the overall stability of the market,” added Vikram Subburaj, CEO of Giottus.
