An expected $1.3 trillion from the worldwide digital asset Stock Market Sell-Off has been wiped out by a rapid decline in Bitcoin and other major cryptocurrencies, igniting fresh worries of a more general financial disaster.
Bitcoin Falls Below Key Support Level
Bitcoin fell below $77,000 on Sunday, a 10% decline from its recent all-time high of almost $90,000. This decline has erased investor trust and raised questions about a possible worldwide financial crisis.
Major Cryptocurrencies See Steep Losses
However, with losses of over 15% in the past 24 hours, Ethereum, XRP, Solana, and Dogecoin have also seen notable drops. Having lately maintained the $79,000 to $80,000 support level, Bitcoin has now broken that range.
Volatility Intensified by Trump’s Tariff Announcement
Following President Donald Trump’s declaration of broad worldwide tariffs, the recession corresponds with growing global market instability. With Wall Street faltering and crypto traders on high alert, the so-called “Liberation Day” tariffs have sparked worries of a financial collapse.
Broader Market Impact
However, the global equity markets also suffered notable declines, with US stocks showing their most extraordinary two-day fall since 2020. The markets have been startled by worries of a trade war and global recession following Trump’s tariff decision. With US stocks contributing $5.87 trillion, the S&P Global Broad Market Index revealed a $7.46 trillion decline in market value during just two sessions. An analyst at CoinGlass observed, “investors are running away from risk assets everywhere.”
Crypto Markets Hit Hard
With $247 million in extended liquidations in the last 24 hours alone, Bitcoin has seen tremendous selling. Ether follows closely, with liquidation numbers of $217 million. Since Bitcoin is sometimes used as a substitute for risk tolerance, its issues reflect broader market trends. Bitcoin has dropped 15% since the beginning of 2025, but it has remained between $82,000 and $83,000.
Potential US Federal Reserve Action Could Stabilize Markets
Investors today emphasize possible US Federal Reserve action. Growing hopes exist that the central bank would lower interest rates to prevent a potential recession, giving the financial system much-needed support.
Can Bitcoin Recover?
Looking ahead, analysts believe that Bitcoin’s recovery could depend on two main factors:
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Political Signals: A potential shift in Trump’s Executive Order stance on tariffs.
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Federal Reserve Intervention: Emergency measures from the US Federal Reserve could help Bitcoin’s price climb above $80,000.
As Congress gets ready to discuss possible legislative developments in digital assets, these losses represent the most significant market dip for cryptocurrencies since the beginning of the year.
