Bitcoin experienced a significant decline over the weekend, plummeting 6% to settle at $77,730. This drop came amid heightened market volatility triggered by the announcement of new tariffs by US President Donald Trump.
The broader sell-off last week marked the steepest decline for US equities since 2020, generating a ripple effect that impacted digital assets as well.
For most of 2025, Bitcoin had remained above the $80,000 mark but has now fallen below the critical threshold of $78,000 for the first time in several weeks.
Bitcoin Correlates with Tech Stocks Amid Global Market Turmoil
The decline positions Bitcoin approximately 28% beneath its all-time high recorded in January. Other prominent cryptocurrencies also faced substantial losses, with Ethereum dropping 13% to $1,568, XRP declining nearly 12%, and Solana falling over 12% to $105.43.
Recent months have seen Bitcoin increasingly track the performance of major tech stocks, often moving in tandem with indices such as the S&P 500 and Nasdaq. Analysts noted a weekly correlation of 0.88 between Bitcoin and the equities market in March. This correlation persisted as last week’s downturn on Wall Street, fueled by fears of a potential global trade conflict, weighed down Bitcoin’s value.
$77,500 is a critical support level in Bitcoin and if that fails, it should plunge sharply from there…$BTC $IBIT pic.twitter.com/G2GyFOHCv1
— Jesse Colombo (@TheBubbleBubble) April 7, 2025
Major Declines in Hong Kong Stocks
The market turmoil was not confined to the United States. On Monday, Hong Kong’s Hang Seng index recorded a staggering drop of more than 10% during morning trading, its largest one-day descent since the 2008 financial crisis.
Chinese equities also suffered severe losses in response to the imposition of over 50% tariffs by the US. In retaliation, Beijing announced new tariffs on American imports, heightening fears that escalating trade tensions could trigger a global economic recession.
Goldman Sachs has indicated an increased likelihood of a US recession, now estimated at 45% within the next year, a sentiment echoed by several other leading financial institutions.
Crypto Market Liquidations Surge, Positive Long-Term Sentiment Persists
Nevertheless, voices within the cryptocurrency community have called for composure. “These price fluctuations may unsettle traders, but this is ultimately just noise,” noted Gadi Chait, investment manager at Xapo Bank. “Bitcoin’s essence lies in its inherent sovereignty, decentralization, and limited supply—not in temporary volatility. We have experienced this before and will continue to navigate it, yet Bitcoin’s long-term promise remains steadfast.”
Despite these reassurances, signs of market stress were evident in derivatives trading. According to Coinglass, nearly $976 million in crypto positions were liquidated over the last 24 hours, with long positions constituting $842.2 million of that figure.
Over 318,000 traders experienced liquidations, reflecting the volatile shifts in market sentiment during turbulent periods.
Attention is now focused on the $76,600 price level, as a decline below it could herald a more profound market correction. Presently, Bitcoin remains within a larger trading range, with advocates hoping this downturn represents merely a brief disruption in an otherwise strong market.
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