Why Is Bitcoin Down Today? Trump Tariffs Spark Market Panic as BTC Slides Below $75K

Bitcoin (BTC) plunged to as low as $74,804 on Monday, marking its lowest level in months and igniting fresh concern across crypto markets. 

The sudden drop followed President Donald Trump's sweeping tariff announcement, which has reignited fears of a global recession and triggered a sharp sell-off in risk assets—including cryptocurrencies.

As of this writing, Bitcoin is trading at $76,577.05, down nearly 9.5% in 24 hours, and nearly 30% off its January all-time high near $110,000.

Trump's Tariffs Trigger a Risk-Off Avalanche

The catalyst for the crash is clear. Trump's "Liberation Day" tariffs, which imposed a blanket 10% import tax on foreign goods and targeted levies of up to 54% on imports from China and India. The move spooked global markets, sending equity indexes tumbling worldwide and wiping out trillions in value.

Bitcoin, often treated as a proxy for risk-on sentiment, was caught in the crossfire. According to Coinglass, more than $411 million in Bitcoin long positions were liquidated in the past 24 hours, underscoring the severity of the market's move.

"The window of uncertainty has only widened for markets over the last few weeks, and Bitcoin is not immune when people need to sell what they can for posting margin or internal risk models," said independent crypto analyst Will Clemente in a statement to CNBC.

The 1987 Black Monday Comparison

The panic, according to market commentator Jim Cramer, resembles the conditions surrounding 1987's Black Monday, when the Dow Jones Industrial Average fell 22.6% in a single day. On Monday, the VIX index—Wall Street's volatility gauge—surged past 50, its highest reading since 2020, signaling acute investor anxiety.

An analysis from 99Bitcoins drew parallels to Black Monday's rapid collapse, highlighting that global equity markets have dropped 7% to 13% in just a few sessions. The report pointed to Bitcoin's role as a speculative asset, still vulnerable to broader market sentiment despite growing institutional adoption.

Bitcoin Technical Levels to Watch

From a technical standpoint, Bitcoin's break below $78,000 and now $75,000 places it in an interesting position. The breach invalidated a recent consolidation range and appears to confirm a bearish trend continuation.

Analysts are eyeing $70,000 as the next critical support level, with $68,000—the February low—representing a longer-term floor. Should those levels fail, some traders fear a drop toward $60,000, where Bitcoin last consolidated in late 2024.

Conversely, a recovery above $80,000, which has acted as psychological resistance, could help restore bullish momentum.

What Analysts Are Saying

Despite the recent downturn, some analysts maintain a long-term bullish outlook on Bitcoin, particularly amid macroeconomic instability and deglobalization trends.

Standard Chartered's Head of Digital Assets, Geoff Kendrick, noted on Sunday that Bitcoin "will become a hedge against tariff risks this time around," suggesting the digital asset could benefit from mounting skepticism toward fiat currencies.

Clemente echoed the sentiment. "Should equities get relief, bitcoin will likely follow as well."

The Outlook: Caution, Not Capitulation

While the weekend sell-off was severe, there are signs that the correction may be nearing exhaustion—provided no further macro shocks materialize. Bitcoin remains one of the best-performing assets over the past 12 months, even after accounting for this latest drawdown.

Still, the outlook remains uncertain. With global equity markets under pressure, interest rates elevated, and crypto-specific catalysts on pause, Bitcoin's path forward depends heavily on macro sentiment.

Bitcoin Price Prediction for April 8, 2025

As always, investors are advised to watch key support levels, manage risk appropriately, and monitor geopolitical developments closely. While Bitcoin may ultimately prove resilient, the days ahead are likely to remain turbulent.