Bitcoin plunges below $77,000 as Trump’s tariffs strike the market

In April 2025, the ongoing global financial market volatility caused by U.S. President Donald Trump’s tariff announcements led to significant declines in cryptocurrency prices, particularly Bitcoin. The price of Bitcoin experienced a notable drop of approximately 28 percent since it reached a record high of nearly $110,000 in January of the same year. As further evidence of the volatility, rival cryptocurrencies like Ethereum and Solana suffered even more severe losses, declining by over 12 percent in a 24-hour trading span. The combined performance of cryptocurrencies reflected a substantial downturn in the overall crypto market as investors expressed growing concerns about the economic implications of Trump’s tariffs and escalating recession fears, especially in the U.S. market. Trump's tariffs on imports were announced early in April 2025, positioning them as a primary provocateur for the financial turbulence. Following Trump's election win and subsequent tariff plans, the cryptocurrency market had initially thrived based on speculative optimism, which has since flipped dramatically. Investors in the crypto space saw nearly $250 million in long liquidations within a day, a stark indicator of the market's rapid and drastic changes influenced by outside economic policies. Analysts from JPMorgan contributed to the narrative by suggesting the risk of a recession had now escalated to 60 percent following the tariffs’ implementation, generally affecting risk assets like Bitcoin. The impact of the tariffs extended beyond just cryptocurrencies to traditional markets, with major indexes like the Dow Jones Industrial Average, S&P 500, and Nasdaq showing significant declines in their futures. It was noted that the Dow fell more than 4 percent late on Sunday before the publication date, which highlights the interconnectedness of crypto and stock markets amid such strained financial conditions. The cumulative effect of these developments saw global stock markets lose around $7 trillion in value as the announcement of tariffs took place. Crypto analysts predict that Bitcoin, and the crypto market as a whole, will likely continue to mirror fluctuations seen in traditional stock markets until both markets stabilize. The situation has raised concerns about a prolonged period of market insecurity, not only affecting traders and investors in cryptocurrencies but also the broader economic landscape of the United States and its trading partners.