Bitcoin and other major cryptocurrencies faced significant losses on Tuesday, with Bitcoin dipping by 3.2% to $79,937, after hitting a low of $76,624. Ethereum also saw a sharp decline of 7.5%, dropping to $1,911. The global cryptocurrency market cap fell 4.3%, bringing it down to $2.6 trillion, according to The Economist.
Other cryptocurrencies like Solana, XRP, Cardano, and Dogecoin also experienced substantial losses, with Dogecoin plunging by 8.5%. The declines were attributed to growing concerns over the US economy and rising trade tensions.
Investor confidence was rattled following remarks made by former US President Donald Trump during a Fox News interview, where he mentioned a potential “period of transition” but refrained from clarifying whether his tariff policies could push the economy into a recession. These comments led to declines in cryptocurrencies, stocks, and the US dollar, while Treasury yields also dropped.
“This downturn in the crypto market, with Bitcoin falling below $80,000 and Ethereum hitting a 16-month low around $1,800, is driven by growing fears of an impending recession,” said Avinash Shekhar, Co-Founder & CEO of Pi42.
Macroeconomic factors like inflation and interest rates continue to fuel market volatility, with Job Openings and Labor Turnover data expected to be a key indicator for the market. “A positive outcome 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 61.04% dominance, while its trading volume surged 53.14% to $58.13 billion. Vikram Subburaj, CEO of Giottus, emphasized the importance of Bitcoin holding above the $80,000 level to ensure overall market stability.
