Bitcoin crashes 10% as crypto market wipes out $1.3 trillion in value since January

Analysts now point to $72,000, the pre-election high, as the next level of potential support.

The fall comes in the wake of heightened volatility across global markets, driven by Trumps so-called Liberation Day tariffs, which some analysts warn could trigger a global trade shock and recession-like conditions.

Other major cryptocurrencies have followed suit, with ethereum, XRP, solana, and dogecoin posting losses of more than 15 percent in the last 24 hours alone.

The rapid decline across crypto markets has mirrored recent losses in equities, suggesting a tightening correlation between digital assets and traditional financial markets.

$1.3T crypto loss tied to tariff fears

Last week, investor sentiment shifted further as traders increased bets that the Federal Reserve may soon be forced to cut interest rates to prevent a United States recession.

Such action could inject more dollars into the market, potentially helping bitcoin prices recover.

However, the near-term impact of Trumps tariff policies has injected uncertainty across asset classes, with analysts describing the scenario as a possible “crisis.”

Trumps economic proposals, announced on what he called Liberation Day, include sweeping tariffs that could strain global trade relationships.

This has spooked both Wall Street and crypto traders, prompting selloffs over the weekend.

The timing of bitcoins drop on Sunday, in particular, is viewed as an early signal of broader market sentiment heading into the new trading week.

Fed rate cut hopes meet Trumps tariffs

Some analysts warn that the crypto markets weekend activity may be a preview of Mondays equity performance.

With bitcoin and other digital assets falling rapidly on Sunday, theres speculation that stock markets may open lower, continuing the bearish trend.

Ethereum, solana, and dogecoin experienced steeper declines than bitcoin, amplifying fears that risk-off sentiment is spreading.

The crypto markets current trajectory is being closely watched by traders looking for signs of intervention or policy reversal.

A change in Trumps stance or potential emergency support from the Federal Reserve could help stabilise bitcoin and restore confidence across markets.

The $1.3 trillion wiped from the crypto market this year underscores how tightly digital assets are now interwoven with macroeconomic forces, including monetary policy decisions and geopolitical trade moves.

As Congress also prepares to discuss regulatory changes that could reshape the digital asset landscape, the future direction of bitcoin and the broader crypto market remains uncertain.

The post Bitcoin crashes 10% as crypto market wipes out $1.3 trillion in value since January appeared first on CoinJournal.