The price of Bitcoin (BTC) has fallen to $77,000 U.S., breaking below the key support level of
$80,000 U.S. as investors continue to flee risk assets.
Bitcoin is falling alongside stocks as global equity markets suffer their worst losses since the onset of the Covid-19 pandemic in 2020.
Other cryptocurrencies are faring worse than Bitcoin, with Ethereum down 7% and XRP down 10% on April 7.
Until now, Bitcoin had managed to trade above $80,000 U.S. this year and analysts saw the level as key resistance for the largest cryptocurrency by market capitalization.
Bitcoin is now down nearly 30% from an all-time high of $109,000 U.S. reached on Jan. 20 of this year, the day of U.S. President Donald Trump’s inauguration.
Typically, Bitcoin trades like a technology stock and is often viewed by traders as a leading indicator of market sentiment.
The crypto sector is falling in tandem with stocks as investors flee risk assets following President Trump’s imposition of a baseline 10% tariff on all imports into America.
Bitcoin’s price drop has triggered a wave of liquidations, as options traders betting on an increase in the cryptocurrency’s price were forced to sell their holdings to cover losses.
Investors are clearly anticipating more turmoil from Trump’s tariff regime and protectionist trade policies.
The duties on all imports, in addition to custom tariffs for major trading partners, have sparked fears of a global trade war that could lead the U.S. economy into a recession.
Many analysts expect Bitcoin and other crypto to continue moving in tandem with equities as recession fears overwhelm global markets.
