- Bitcoin fell under $80K, as market crash by liquidated $600 million in trades
- Stock markets dropped badly, having the worst week since 2020.
- Trump’s new EU tariffs may cause a global trade fight as countries plan to strike back.
The price of Bitcoin fell rapidly from close to $83,000 to below $79,000 within a matter of hours. The sudden dip created a wave of liquidations in which some $600 million of leveraged bets were erased based on CoinGlass data.
They were high-risk positions in which the traders had used borrowed funds anticipating Bitcoin to rise, but the price decline got them caught off guard.
What Caused the Market crash?
Prior to this crash, Bitcoin had been performing well and even better than large stock markets. Some thought it was behaving like a digital gold a safe haven.
But with this decline, fears are surfacing again. Analyst Jonatan Randing stated that Bitcoin is near touching its 50-week EMA (a typical technical level), which typically serves as a solid support during bull markets. He also asked if we are even in a bull market anymore.
Meanwhile, tensions in international markets are escalating. The former US President Donald Trump issued a 20% tariff on EU goods. The EU is retaliating by planning to impose their own tariffs. This tit-for-tat has sent shivers down the spines of investors.
More Countries Get Involved
It’s not just the U.S. and Europe. Other countries are also reacting:
- China may reintroduce its old tariffs on U.S. goods.
- India is thinking about taxing American products like electronics and farm items.
- Mexico and Canada are also worried and may review their trade deals with the U.S.
- Brazil is watching the situation closely and could act if needed.
Global stock markets are already under pressure. Last week was the worst for the S&P 500, NASDAQ 100, and Dow Jones since the COVID crash of 2020. Investors worry that these new trade tensions might slow the economy and inflate prices.
As Bitcoin plunged below $80,000, triggering over $600 million in leveraged position liquidations within hours (CoinGlass).
U.S. stocks had their worst week since 2020, with S&P 500 down 3.1%, NASDAQ 100 down 4.6%, and Dow Jones down 2.9%.
Trump’s 20% tariff on EU imports sparked fears of a global trade war, shaking both equity and crypto markets.
Market volatility is expected to continue until clearer resolutions on tariffs and trade emerge.
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