Bitcoin and other major cryptocurrencies slumped on Tuesday as concerns over the US economy and trade tensions intensified.
Bitcoin fell 3.2% to $79,937 after hitting a low of $76,624, while Ethereum plunged 7.5% to $1,911. According to The Economist, the global crypto market cap declined by 4.3% to $2.6 trillion. Other major cryptocurrencies, including Solana, XRP, Cardano, and Dogecoin, also suffered losses, with Dogecoin dropping 8.5%.
Investor sentiment weakened following comments by former US President Donald Trump in a Fox News interview, where he referred to a “period of transition” but did not clarify whether his tariff policies could trigger a recession. His remarks led to declines across cryptocurrencies, stocks, and the US dollar, while Treasury yields also slipped.
“The crypto market is experiencing a significant downturn, with Bitcoin dropping below $80,000 and Ethereum hitting a 16-month low of around $1,800,” said Avinash Shekhar, Co-Founder & CEO of Pi42.
He attributed the decline to recession fears and broader market sell-offs, noting that macroeconomic factors like inflation and interest rates continue to fuel volatility.
“The upcoming Job Openings and Labor Turnover data will be crucial for bulls looking to regain control. A positive report could help Bitcoin reclaim the $84,000 mark,” said Edul Patel, CEO of Mudrex.
Bitcoin’s market cap dropped to $1.585 trillion, maintaining a dominance of 61.04%, while trading volume surged by 53.14% to $58.13 billion.
“Bitcoin’s ability to reclaim and sustain $80,000 remains critical for overall market stability,” said Vikram Subburaj, CEO of Giottus.
