Bitcoin and other leading cryptocurrencies plunged on Tuesday amid growing worries about the US economy and escalating trade tensions.
After plunging to a low of $76,624, Bitcoin fell 3.2% to $79,937. Ethereum plummeted, dropping 7.5% to $1,911. According to The Economist, the worldwide cryptocurrency market capitalisation fell 4.3% to $2.6 trillion.
Solana, XRP, Cardano and Dogecoin also suffered losses, with Dogecoin plunging 8.5%.
Investor confidence weakened after former US President Donald Trump, in a Fox News interview, mentioned a “period of transition” but did not clarify if his tariff policies might lead to a recession.
His remarks caused declines across cryptocurrencies, stocks, and the US dollar while Treasury yields also dropped.
“The crypto market is seeing its major downturn with Bitcoin falling under $80,000 and Ethereum recording a 16-month low of around $1,800,” said Avinash Shekhar, Co-Founder & CEO of Pi42.
“Fears of a coming recession and the overall market sell-offs are spurring this pullback.”
Macroeconomic factors like inflation and interest rates continue to drive volatility.
“The upcoming Job Openings and Labor Turnover data would be crucial for bulls to take control.
“A positive outcome data could help BTC reclaim the $84,000 mark,” said Edul Patel, CEO of Mudrex.
Bitcoin’s market cap fell to $1.585 trillion, with a dominance of 61.04%.
Trading volume surged 53.14% to $58.13 billion.
“Bitcoin’s ability to reclaim and hold $80,000 remains critical for overall market stability,” noted Vikram Subburaj, CEO of Giottus.
