Bitcoin falls to $74000 before rebounding: Cryptocurrency joins chain reaction of global market crash

Bitcoin reduced its earlier losses in yesterday's afternoon trading, after falling over $10000 over the weekend due to recession concerns caused by tariffs and global market sell-off. According to data from Coin Metrics, the price of Bitcoin has exceeded 1% to $78146.03 during its last decline. This is higher than the earlier low of $74420.69, but it has decreased compared to the high of nearly $85000 last Friday. So far, the price of Bitcoin has fallen by about 28% compared to its peak in January. At the same time, the decline of Ethereum and expansion related tokens has also expanded to 13% and 10% respectively in the past two days.

With the implementation of retaliatory tariffs by the Trump administration, concerns about a global economic recession have been raised, leading investors to sell all high-risk stocks on Friday, marking the largest drop in the stock market since 2020. Panicked investors began selling their cryptocurrency assets over the weekend, preparing for further disaster.

The decline of Bitcoin has also triggered a wave of long-term liquidation, as traders who bet on the rise of Bitcoin prices are forced to sell assets to make up for losses. According to Coin Glass data, Bitcoin experienced over $438 million in long-term liquidation within 24 hours on Monday. Ethereum also experienced a long-term liquidation of $349 million during the same period.

Although I usually believe that we are nearing the end of Bitcoin's correction, in the past few weeks, the uncertainty window in the market has widened, and Bitcoin has not been spared when people need to sell assets that they can use for margin calls or internal risk models, "said Will Clement, an independent investor and former co-founder of Reflexity Research.

David Hernandez, a cryptocurrency investment expert at 21Shares, said, "This rebound has boosted the price of Bitcoin, and as traders withdrew their funds to observe, the price of Bitcoin has risen to over $78000. As the past few trading days have proven, the uniqueness of Bitcoin is that it often participates in the overall market's rise, but not always synchronized with overall risk aversion, highlighting its increasingly different trend from traditional asset behavior

For most of this year, the trading price of Bitcoin has been above $80000, with only a few brief drops during recent periods of volatility. Last week, despite a sharp drop in the stock market and even a decline in gold prices, Bitcoin remained relatively stable and withstood a broader market collapse. LMAX market strategist Joel Kruger told CNBC, "As market turbulence continues, Bitcoin is now testing its key level of $74000, marking its peak in 2024 as a potential low point." Tracy Jin, Chief Operating Officer of cryptocurrency exchange MEXC, said that Bitcoin could still fall to $68000.

Bitcoin fell by 16% in 2025, and without a specific cryptocurrency catalyst, it is expected to continue to fluctuate in sync with stocks, as concerns about a global recession mask any regulatory tailwinds that cryptocurrencies should have benefited from this year.

Time and time again, it has been proven that investors still view Bitcoin as a high-risk asset, and the relatively strong window in the latter half of last week seemed to be just Bitcoin lagging behind the stock market. "Clement said," If the stock market eases, Bitcoin is likely to follow suit. "He also stated that in the long run, the intensification of deglobalization and geopolitical tensions should benefit" decentralized, open source, neutral, and scarce reserve assets like Bitcoin.

The Trump administration's tariff policies have brought about a series of chain reactions, causing stock markets around the world to suffer turbulence. People are concerned about the development of the global economy. Although the Bitcoin crash has ended and has rebounded, if the stock market continues to fluctuate, investors will continue to sell their various capital, and Bitcoin will not be spared again.