Bitcoin Drops Below 78,000 USD As Customs Tax Concerns Cause Market Volatility

Bitcoin (BTC) has fallen below the $78,000 level on Sunday, trading at $77,840, reflecting a 6% drop as investors reacted to significant volatility in the financial markets overall. This decline comes after the worst drop in US stocks since 2020, following President Donald Trump's announcement of global tariffs. The leading cryptocurrency, traded at over $80,000 for most of the year, has now fallen 28% from its all-time high (ATH) of $109,000 in January, another surprising increase thanks to Trump's victory in the election last November. Trump's tariffs triggered $247 million in Bitcoin liquidation Typically, Bitcoin trades in parallel with major tech stocks and is seen by many traders as a leading indicator of market sentiment. Interestingly, last week, Bitcoin remained steady at levels from $82,000 to $83,000 even as stocks and gold plummeted. However, CNBC believes that the recent announcement by President Donald Trump regarding tariffs is due to a change in investor sentiment, causing a sell-off wave in the cryptocurrency market, affecting the largest cryptocurrencies. Tariffs, applied to all imports and including additional taxes on major trading partners, have raised concerns about a potential global trade war. This instability has prompted investors to divest from riskier assets, including cryptocurrencies. Following these developments affecting the entire crypto ecosystem, the leading cryptocurrency experienced more than $247 million in buy order liquidations in just 24 hours since Saturday, while Ethereum (ETH) faced $217 million in similar buy order liquidations in the same time frame. Major cryptocurrencies fall amid concerns over global trade war Over the weekend, as fears of the next market crash emerged, investors rushed to sell their cryptocurrency holdings. Concerns surrounding Trump’s tariffs not only affected Bitcoin but also spread throughout the entire cryptocurrency ecosystem, with other coins like Solana (SOL) falling by about 12%. The consequences of the announcement about tariffs have been felt across global financial markets. Following this news, the S&P Global Broad Market Index recorded a massive loss of $7.46 trillion in market value, with the US stock market alone losing $5.87 trillion. The losses extend beyond the US market, as other major global markets have seen a decline of $1.59 trillion. As Bitcoin continues to reflect the overall trend of the market, its price has fallen by 15% by 2025. Analysts say that without any significant crypto-specific catalysts, Bitcoin will likely continue to fluctuate along with stocks, albeit overshadowed by fears of a global recession These economic instabilities create a challenging backdrop for cryptocurrencies, which were initially expected to benefit from favorable legal developments this year.