Bitcoin Drops Below $80,000, 2.45% Crypto Market Loss Amid Trump Tariff Fears
1min read Bitcoin's price dropped below the $80,000 mark on Sunday, marking a significant decline as investor sentiment weakened across global markets. This downturn was accompanied by a surge in daily liquidations, which amounted to $590 million. The decline in Bitcoin's value was influenced by heightened anxiety over Donald Trump’s proposed tariffs and escalating geopolitical tensions, which weighed heavily on risk assets.
The long-short ratio for Bitcoin dropped to 0.89, with short positions now accounting for nearly 53% of activity. This shift reflects growing skepticism about Bitcoin’s short-term direction among traders. The broader crypto market also experienced a loss of 2.45% on Sunday, reducing the total market capitalization to $2.59 trillion. Bitcoin remains the dominant asset, holding 62% of the market share, while Ethereum follows with 8%.
Sunday’s selloff triggered $252.79 million in crypto derivatives liquidations, with long positions making up the bulk of that figure at $207 million. Ethereum traders accounted for about $72 million in long liquidations alone. Bitcoin’s price remains closely tied to shifts in global liquidity, often reflecting broader macro trends. With U.S. markets set to open Monday, this weekend’s activity signals continued volatility ahead.
Investors may face more pressure after Federal Reserve Chair Jerome Powell warned that Trump’s tariff plans could push inflation higher while slowing economic growth. This combination raises the risk of stagflation, a situation where policy tools become less effective. Efforts to stimulate the economy can worsen inflation, while measures to control prices can limit growth. Bitcoin closed the first quarter with a loss of 11.7%, making it the weakest Q1 since 2014.
Ask Aime: What factors led to Bitcoin's sharp decline below the $80,000 mark?
