Bitcoin Drops 30% to $74,400 as Tariff Concerns Spark Sell-Off
1min read Bitcoin prices have reached their lowest point of 2025, extending recent losses as global investors respond to concerns surrounding ongoing developments in global tariffs. The world’s most prominent digital currency declined to roughly $74,400 this morning, marking its most depressed value since November. This decline represents a loss of more than 30% of its value since reaching an all-time high of more than $108,000 in January.
Analysts frequently pointed to concerns surrounding global tariffs as a significant factor in these latest declines. Joe DiPasquale, CEO of a cryptocurrency hedge fund manager, stated that the recent drop in Bitcoin appears to be largely driven by a broader risk-off sentiment sparked by renewed tariff concerns. He explained that Bitcoin tends to behave more like a risk asset than a safe haven, often mirroring movements in tech stocks and other growth-oriented investments. The fear of escalating trade tensions, particularly between major economies, can prompt investors to shift away from volatile assets like crypto and toward more stable options. This macro uncertainty, combined with profit-taking after Bitcoin’s sharp run-up earlier this year, likely contributed to the sharp sell-off.
Alex Lin, cofounder and general partner at a venture capital firm, offered a similar perspective, noting that heightened economic uncertainty tied to tariff policies is the most prominent factor in Bitcoin’s decline. He observed that the entire market across multiple asset types is reacting accordingly.
Another influencer provided a more complicated explanation, highlighting several factors that may have contributed to Bitcoin’s latest depreciation. She pointed to the outflows that Bitcoin exchange-traded funds (ETFs) have been experiencing lately, suggesting that Bitcoin Spot ETF buyers have been making profits. She also noted how investor interest in gold might be impacting Bitcoin, as many market participants have been using the precious metal as a hedge against economic and political uncertainty. The commodity’s price has been rising to fresh highs lately, with spot gold contracts reaching a record of more than $3,100 earlier this month.
Additionally, she provided some technical analysis for Bitcoin, stating that the cryptocurrency has strong support at $71,000 from April and March of 2024. She suggested that there could be another drop as a prominent market analyst predicted a possible additional 20% market drop. Reclaiming $82,000 would be necessary for a bullish Bitcoin scenario.
Ask Aime: What's driving the recent Bitcoin price slide?
