Bitcoin and other major cryptocurrencies saw a sharp decline on Tuesday as fears over US economic growth and trade policies unsettled investors.
The world’s largest cryptocurrency, Bitcoin, dropped 3.2% to $79,937, briefly touching a low of $76,624. Ethereum also plunged 7.5% to $1,911, while other major altcoins, including Solana, XRP, Cardano, and Dogecoin, suffered significant losses. Dogecoin recorded the steepest drop, sinking 8.5%.
Investor sentiment weakened after former U.S. President Donald Trump, in a Fox News interview, spoke of a “period of transition” without clarifying how his proposed tariff policies might impact the economy. His remarks contributed to broader market declines, affecting cryptocurrencies, stocks, and the U.S. dollar, while also driving down Treasury yields.
“The crypto market is experiencing a significant downturn, with Bitcoin falling below $80,000 and Ethereum reaching a 16-month low around $1,800,” said Avinash Shekhar, Co-Founder and CEO of Pi42. “Fears of a looming recession and market-wide sell-offs are fueling this pullback.”
With macroeconomic uncertainties, including inflation and interest rates, driving market volatility, analysts believe the upcoming U.S. Job Openings and Labor Turnover data could be a key factor in stabilizing Bitcoin’s price. “A positive report could help Bitcoin reclaim the $84,000 mark,” said Edul Patel, CEO of Mudrex.
Bitcoin’s market capitalization has now dropped to $1.585 trillion, with its dominance standing at 61.04%. Trading volume surged 53.14% to $58.13 billion as investors reacted to the latest market developments.
Market analysts stress that Bitcoin’s ability to regain and sustain the $80,000 level will be crucial in determining the broader crypto market’s stability.
