Bitcoin’s price has fallen under $80,000, hitting its lowest point since November 2024. Over the past three days, it has dropped nearly $17,000, triggering the liquidation of over $1 billion in leveraged positions.
What’s Behind the Drop?
Several factors are putting pressure on Bitcoin right now. Analysts point to growing fears of a global recession, weakness in the U.S. stock market, and turmoil in the derivatives market. The recent price drop also coincided with Donald Trump’s announcement that tariffs on Canada and Mexico would remain in place. Furthermore, he today announced the doubling of tariffs on imports from China to 20% starting next week. Trump has also expressed the threat of imposing a 25% tax on imports form the European Union.
Tariffs make it more expensive to import goods, which can slow down economic growth. Investors often react to these kinds of events by shifting their money into lower-risk assets, like U.S. government bonds. Even gold, which is usually seen as a safe investment during uncertain times, has dropped 2.2% over the past two days.
Bitcoin ETFs See Major Outflows
Another factor weighing on Bitcoin is the large amount of money leaving spot Bitcoin ETFs. This week, investors withdrew a record $2.71 billion. When institutional investors pull out of Bitcoin-related funds, it can shake confidence in the market and lead to more selling pressure.
Where Bitcoin Stands Now
At the time of writing, Bitcoin is trading at $79,715, according to CoinMarketCap. The price movement shows how much outside events can influence the crypto market. While Bitcoin has a history of bouncing back after steep declines, short-term volatility can be challenging for new investors.
If you’re new to Bitcoin, watching these ups and downs can feel overwhelming. But price swings are part of the market, and over the years, Bitcoin has gone through many cycles of rising and falling. Staying informed and understanding the factors that drive price movements can help you make better decisions.