As global economic forces align against cryptocurrency markets, Bitcoin has begun what analysts are calling an “unstoppable decline” into bearish territory. The world’s leading cryptocurrency has plummeted below the significant $80,000 threshold, settling around $77,000 as of April 2025—representing a startling 15% year-to-date decline and marking Bitcoin’s worst Q1 performance in a decade.
The culprit? A perfect storm of macroeconomic pressures. U.S. tariffs have released global trade uncertainty, with recent confirmation of potentially catastrophic 104% tariffs on Chinese goods sending shockwaves through financial markets. It’s like watching someone light a match in a room full of economic dynamite—and Bitcoin investors are feeling the blast.
These trade tensions have contributed to a staggering $5.4 trillion loss in U.S. equity value, creating a domino effect that’s toppled into cryptocurrency markets. Bitcoin, once touted as inflation’s kryptonite, now finds itself vulnerable as rising inflation and the Federal Reserve’s reluctance to cut interest rates dampen investor sentiment. The current market conditions reflect a typical bear market pattern where smaller cryptocurrencies experience even more dramatic drops of 70-90% compared to Bitcoin.
The market double-whammy of inflation and Fed inaction leaves Bitcoin exposed as equity losses cascade into crypto chaos.
Technical indicators paint an equally grim picture. The formation of a “death cross”—where short-term moving averages cross below long-term ones—historically signals prolonged price declines. Think of it as Bitcoin’s essential signs flattering on the hospital monitor. Within 24 hours, panic selling triggered $250 million in liquidations, reflecting short-term bearish sentiment.
Support levels at $74,000, $65,000, and $57,000 remain significant battlegrounds for Bitcoin’s price stability. The 2025 downturn eerily resembles 2018, when similar tariff actions triggered a 72% annual value drop for Bitcoin. The pullback has intensified with approximately 745 million in liquidations of bullish crypto positions within just 24 hours, marking a six-week high.
Investor behavior remains divided. While some die-hard “HODLers” maintain long-term positions, many traders are cutting losses or seeking shelter in alternative assets. Institutional investors and ETFs have provided some ballast but haven’t prevented the overall market decline.
As retaliatory tariffs from China appear increasingly likely, Bitcoin’s fate seems increasingly tethered to the resolution—or escalation—of these macroeconomic trade conflicts.
