Bitcoin started the week at around $81,800, down 1.98% over the last 24 hours, continuing its weekly downward trend, exceeding 7% from its local peak of $88,400 on March 25th.
The sustained decline caused a liquidated crypto position of around $220 million, extending the low low on Bitcoin for seven days in a row.
Pullback coincides with wider losses across the broader digital asset market. Global Crypto’s market capitalization fell to $2.65 trillion, down 1.77% over the same 24 hours, and daily trading volume fell 1.4% to $57 billion.
Macroeconomic stress and tariff uncertainty erodes market trust
He raised anxiety ahead of former President Donald Trump’s “liberation day” on April 2, during which he was expected to reveal a drastic “mutual tariffs,” putting pressure on crypto and traditional financial markets. The forecast of aggressive trade measures has led to a derivative trend across the spot market, reducing demand, increasing the number of s for investors.
Multiple negative macroeconomic signals contribute to anxiety. Core PCE data released last week pointed to higher inflation than expected, but consumer confidence fell to its lowest level in over a decade. Meanwhile, Goldman Sachs has raised its recession forecast from 20% to 35%, citing rising geopolitical and economic risks.
The decline in Bitcoin reflects losses across the stock market, enhancing its correlation with traditional risky assets. The S&P 500 fell by more than 6% this month, but the industrial averages for Nasdaq and Dow Jones fell by 9% and 4.7% respectively.
Bitcoin now fell 13% in the first quarter of 2025. This is the worst quarterly performance of an asset in two cycles. The revision shows a complete segregation of assets, with gold rising to an all-time high of over $3,087.
Set to test market resilience
Future tariff announcements could be a significant inflection point for crypto and broader financial markets. Trump’s April 2nd “liberation date” promises a tariff hike, along with the targets that include the European Union, South Korea, Brazil and India, as reported by CNBC.
Goldman Sachs predicts these obligations could raise inflation and unemployment while slowing down economic growth. Their forecasts include a potential increase in tariff rates by 15 percentage points, but certain products and country sculptures can reduce the effective increase to 9 percentage points. According to Reuters, the immediate market impact will depend on whether other countries will respond in physical form, particularly on the width of tariff implementation and the timeline.
If retaliation occurs, it could launch a feedback loop for escalating trade restrictions, which could increase market volatility. Analysts believe it is important to assess the sentiment of resilient investors in the face of potential policy shocks and lasting macro headwinds.
Bitcoin faces technical and emotionally driven headwinds
The technical patterns of Bitcoin suggest further negative side risks, with price action approaching key support levels. The assets are testing the level where they can accelerate the pace of liquidation if they break down and open the door for a short-term bearish continuation.
Bitcoin has repeatedly failed to maintain its purple price channel, returning to the Green Channel, the last historic channel before the potential bottom channel of the cycle, for $73,000.
While some analysts expect Bitcoin to benefit from the long-term inflationary pressures caused by tariffs, the story remains speculative and disconnected from immediate selling. For now, traders appear to be focusing more on capital conservation amidst unclear macro signals and escalating geopolitical risks.
