Bitcoin Plunges Below $80,000 Due to Trump’s Taxes
Bitcoin experienced a sudden drop on Sunday, April 6, losing nearly 7% to hit a three-week low, currently around $77,000. This decline follows the announcement by U.S. President Donald Trump of imposing new massive import taxes, raising concerns about a new trade war and a global economic slowdown.
While investors speculated on Bitcoin potentially serving as a “safe haven” amid the technology stock turmoil, the scenario reversed on Sunday evening. As the Asian stock markets opened, panic ensued, with drops of over 4% on the S&P 500 and Nasdaq 100. Bitcoin did not withstand this pressure and collapsed, dragging down many other major cryptocurrencies like Ethereum (-14.5%) and Solana (-14.4%).
Extreme Volatility in a Risk-Averse Climate
According to Coinglass data, nearly $778 million of long positions in crypto were liquidated in the last 24 hours, marking the most significant move of its kind in almost six weeks. This sharp correction highlights the high volatility prevailing in the crypto markets amidst widespread risk aversion.
Additionally, the Crypto Fear & Greed Index, a measure of investor sentiment, dropped by 11 points to reach the level of 23, indicating “extreme fear”. Some observers, such as BitMEX co-founder Arthur Hayes, believe that this turbulence could eventually drive more investors towards Bitcoin, seen as a safe haven against centralized economic policies.
According to analyst and Bitcoiner Jeff Park, the drop may not stop there. “Some declines are good for buying, some are omens, this one is a warning, not worth betting on,” he wrote on X. However, he remains very optimistic long-term.
Nevertheless, Bitcoin’s resilience will be severely tested in the coming days. Profit-taking and panic moves may continue as long as uncertainties around U.S. economic policy persist.
