Bitcoin Plunges Under $80,000, Sinking to $78,000 as Markets Face Heavy Liquidation

Bitcoin’s recent drop below $80,000 to $78,000 on April 6, 2025, reflects a perfect storm of macroeconomic pressures and market dynamics, amplifying volatility in the crypto space. This decline coincides with broader financial turmoil triggered by Donald Trump’s global tariff announcement, which has already shaved $74 billion off the fortunes of billionaires like Elon Musk, Jeff Bezos, and Mark Zuckerberg. The S&P 500 and Nasdaq fell nearly 5% and 6%, respectively, signaling a risk-off sentiment that’s spilling into cryptocurrencies.

The primary driver behind Bitcoin’s fall is the uncertainty from Trump’s tariffs, which include a 25% levy on imports from countries like China, Canada, and Mexico. This has heightened global trade tensions, with retaliatory tariffs looming, spooking investors across all risk assets. Bitcoin, often correlated with tech stocks, has been hit hard as recession fears grow—Trump’s own comments on a potential economic downturn have only fueled the fire. The Nasdaq 100’s multi-session decline has dragged Bitcoin down, as investors pivot to safer assets like gold.

Adding to the pressure, long-term Bitcoin holders have been selling off, with over 178,000 BTC recently moved from their wallets, per X posts. This selling, combined with $4.8 billion in outflows from spot Bitcoin ETFs, has crushed bullish momentum. On the technical side, Bitcoin broke below the $84,000 support level, triggering a cascade of liquidations. Leveraged traders betting on a price rise (long positions) were forced to sell as the price fell, with $600 million in liquidations reported when Bitcoin hit $79,000—a figure likely higher at $78,000. This self-reinforcing sell-off, amplified by market panic and geopolitical tensions with nations like China, has pushed Bitcoin into a bearish trend.

The broader crypto market is also reeling, with altcoins and crypto stocks likely facing steeper losses. Bitcoin’s next key support lies at $75,000; a break below could see it test $64,000. Conversely, a rebound above $80,000 might signal a recovery, but ongoing trade wars and economic uncertainty could keep Bitcoin suppressed, highlighting its struggle to decouple from traditional markets.