Why Bitcoin Price Is Crashing Today Amid Global Market Turmoil
The post Why Bitcoin Price Is Crashing Today Amid Global Market Turmoil appeared first on Coinpedia Fintech News
Bitcoin has tumbled below the $75,000 mark for the second time this week, bringing its total weekly losses to over 11%. While the broader crypto market is also bleeding, the catalyst for this correction appears to be rooted in geopolitics and mounting fears of a recession.
The back-and-forth tariff war is heating China dumped $50B in U.S. treasuries, and now the U.S. is hitting back with a 104% tariff on Chinese goods, starting in just hours. Until clear progress is made or retail traders start shorting or selling off heavily, extreme volatility is expected across all markets.
Trump’s Tariff War Sends Shockwaves Across Risk Assets
The immediate trigger came from Donald Trump’s aggressive 104% tariff on Chinese goods, which went into effect recently. This move has rattled global investors and sparked a broader risk-off sentiment. Equities, bonds, and cryptocurrencies are all reacting to the rising trade tensions between the world’s two largest economies.
Bitcoin, known for its sensitivity to macroeconomic instability, faced strong selling pressure. Institutional activity confirmed this as BlackRock’s iShares Bitcoin Trust (IBIT) offloaded 3,296 BTC in a single day—marking its third-largest outflow since inception. Altogether, U.S. Bitcoin ETFs saw net outflows of $326 million on the day, adding to the downward momentum.
Market Trapped in a False Rally
Bitcoin briefly rallied to $80,400 in what seemed like a relief bounce. However, that rally quickly faded, and prices slipped back into a downward spiral, forming a classic bull trap. Over $390 million in crypto liquidations followed, according to Coinglass, as traders were caught on the wrong side of the move.
Altcoins saw a short-lived bounce, with ETH climbing 2.04% to $1,567, while SOL and XRP jumped nearly 5%. Dogecoin led the hourly surge with a 5.5% spike, and even BNB edged up 1.49%. However, the overall crypto market cap still dropped 4.27% in the past 24 hours, suggesting this rally was driven more by speculation than real improvement, likely fueled by false crypto news.
Analysts See This as a Global Threat
Economists now warn that the current situation bears similarities to late 2018, when the Fed was forced to shift course due to a weakening economy. Arthur Hayes, co-founder of BitMEX, said that the Fed is “on the clock,” pointing out that the current combination of falling equities and rising bond yields is a troubling sign.
Peter Schiff echoed this concern, stating that if Trump’s goal was to crash the market to lower interest rates, it’s now backfiring, with long-term Treasury yields climbing to new highs.
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How Low BTC to Go?
With the markets under pressure, speculation is building around a possible Fed pivot in May. Analysts believe a rate cut could calm volatility, especially if paired with any easing of U.S.-China trade tensions. Until then, Bitcoin could remain under pressure, with $70,000 as a key level to watch.
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