Bitcoin’s price plunged below the $78,000 mark today, joining the broader financial market downturn as investors reacted to President Donald Trump’s newly announced global tariffs.

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The leading cryptocurrency shed 6% of its value, landing at $77,730.03 according to Coin Metrics data, marking a significant retreat from the $80,000+ level it has largely maintained throughout 2025.

Breaking the Trend

What makes this decline particularly noteworthy is how it breaks Bitcoin’s recent pattern. Just last week, Bitcoin demonstrated remarkable resilience by holding steady between $82,000 and $83,000 while traditional markets experienced their worst decline since 2020. That brief decoupling from conventional market movements had some crypto enthusiasts suggesting Bitcoin was finally establishing itself as a true alternative asset class.

Today’s drop suggests otherwise. Bitcoin, which typically trades with patterns similar to tech stocks and often serves as a barometer for broader market sentiment, appears to have finally succumbed to the same economic fears driving equity markets lower.

A Wider Crypto Selloff

Bitcoin wasn’t alone in its descent. The broader cryptocurrency market experienced even steeper declines:

• Ethereum (Ether) tumbled approximately 12%
• Solana dropped about 12%
• Long liquidations across the crypto market reached staggering levels, with Bitcoin seeing more than $247 million in long positions liquidated in the past 24 hours
• Ethereum traders experienced $217 million in long liquidations during the same period

These liquidation figures reflect the cascading effect that occurs when leveraged positions are forced to close, creating additional selling pressure and potentially exacerbating price declines.

The Bigger Picture

While today’s drop is significant, it’s worth noting that Bitcoin remains in positive territory for 2025 overall. However, the current price represents a 28% decline from January’s all-time high, putting Bitcoin firmly in correction territory.

The catalyst for the broader market sell-off appears to be President Trump’s implementation of restrictive global tariffs, which have spooked investors concerned about potential trade wars and their impact on global economic growth. Such policies typically create uncertainty in markets, leading investors to reduce exposure to assets perceived as risky.

What’s Next?

Market analysts remain divided on Bitcoin’s short-term outlook. Some view this correction as a healthy reset after Bitcoin’s dramatic rise over the past year, while others worry it could signal the beginning of a more prolonged crypto winter.

For now, crypto market participants will likely be watching traditional market indicators closely, particularly how equities respond to the ongoing tariff situation. Additionally, upcoming economic data releases could provide further insight into whether the Federal Reserve might adjust monetary policy in response to potential economic headwinds created by the new tariffs.

One thing remains clear: despite its maturing market status, Bitcoin continues to demonstrate that it hasn’t fully decoupled from traditional market dynamics, especially during periods of significant macroeconomic uncertainty.