- Ethereum, XRP, solana, and dogecoin fall by more than 15%.
- Bitcoin loses critical $79,000-$80,000 support level.
- Fed rate cut bets rise as traders assess recession risks.
Bitcoin’s sharp decline over the weekend has put the broader cryptocurrency market on edge, with traders now gauging the fallout from Donald Trump’s proposed global tariffs and the potential for further losses.
The leading digital asset fell below $77,000, marking a drop of more than 10 percent from its record high of almost $90,000 just a week earlier.
This downturn has erased significant value from the crypto market, which has now lost $1.3 trillion since January.
The broader concern is whether the current correction signals a deeper crisis for digital assets tied to mounting macroeconomic pressures.
Bitcoin loses $79K support as market slides
The price of bitcoin dropped beneath a key technical level—$79,000 to $80,000—over the weekend.
This support had held firm for over a month after the asset hit its all-time high.
Source: CoinMarketCap
Analysts now point to $72,000, the pre-election high, as the next level of potential support.
The fall comes in the wake of heightened volatility across global markets, driven by Trump’s so-called Liberation Day tariffs, which some analysts warn could trigger a global trade shock and recession-like conditions.
Other major cryptocurrencies have followed suit, with ethereum, XRP, solana, and dogecoin posting losses of more than 15 percent in the last 24 hours alone.
The rapid decline across crypto markets has mirrored recent losses in equities, suggesting a tightening correlation between digital assets and traditional financial markets.
$1.3T crypto loss tied to tariff fears
Last week, investor sentiment shifted further as traders increased bets that the Federal Reserve may soon be forced to cut interest rates to prevent a United States recession.
Such action could inject more dollars into the market, potentially helping bitcoin prices recover.
However, the near-term impact of Trump’s tariff policies has injected uncertainty across asset classes, with analysts describing the scenario as a possible “crisis.”
Trump’s economic proposals, announced on what he called Liberation Day, include sweeping tariffs that could strain global trade relationships.
This has spooked both Wall Street and crypto traders, prompting selloffs over the weekend.
The timing of bitcoin’s drop on Sunday, in particular, is viewed as an early signal of broader market sentiment heading into the new trading week.
Fed rate cut hopes meet Trump’s tariffs
Some analysts warn that the crypto market’s weekend activity may be a preview of Monday’s equity performance.
With bitcoin and other digital assets falling rapidly on Sunday, there’s speculation that stock markets may open lower, continuing the bearish trend.
Ethereum, solana, and dogecoin experienced steeper declines than bitcoin, amplifying fears that risk-off sentiment is spreading.
The crypto market’s current trajectory is being closely watched by traders looking for signs of intervention or policy reversal.
A change in Trump’s stance or potential emergency support from the Federal Reserve could help stabilise bitcoin and restore confidence across markets.
The $1.3 trillion wiped from the crypto market this year underscores how tightly digital assets are now interwoven with macroeconomic forces, including monetary policy decisions and geopolitical trade moves.
As Congress also prepares to discuss regulatory changes that could reshape the digital asset landscape, the future direction of bitcoin and the broader crypto market remains uncertain.
