Bitcoin briefly joined the sell-off in global markets due to rising recession fears related to escalating customs duties, falling sharply to $74,000 today before rising above $78,000.
“Today’s relief rally lifted Bitcoin, sending prices above $78,000 as traders deployed the cash they had been putting away,” said David Hernandez, cryptocurrency investment expert at 21Shares. “Uniquely, as seen over the last few sessions, BTC tends to join the broader market rally but does not always crash at the same time as traditional assets.”
Despite its relative strength over the past week, when stocks and even gold fell, Bitcoin’s brief slump underscores the asset’s ongoing volatility. Will Clemente, an independent crypto investor and former co-founder of Reflexivity Research, noted that Bitcoin is still under pressure amid the liquidity crunch.
“While I think we’re closer to the end of this correction for BTC overall than the beginning, the window of uncertainty has only widened for markets over the last few weeks,” Clemente said. “Bitcoin is not immune when people need to sell what they can to either run margin or internal risk models.”
Market analysts are now closely watching Bitcoin test the $74,000 level, a key high in early 2024. Joel Kruger, market strategist at LMAX, identified the spot as a critical near-term support level, while MEXC COO Tracy Jin warned that BTC could still fall to $68,000 if broader market weakness continues.
Some investors have been expecting a Bitcoin correction since its record-breaking rally earlier this year. “The potential for a pullback was evident when both stocks and crypto reached new highs,” Kruger said. Early signals, such as concerns about the economic drag on Trump’s policies, were evident as far back as February, Clemente added.
*This is not investment advice.
