Wondering why is bitcoin down today? Bitcoin has fallen sharply in the last 24 hours, dropping over 8% to $74,700, its lowest level since November 7, 2024.
This decline has wiped out most of the cryptocurrency’s gains since Donald Trump’s election victory, and it comes as global financial markets react to growing fears of a potential economic crisis.
Let’s find out why is Bitcoin down today.
Trump’s Tariff Shock Triggers Global Market Sell-Off
The drop in Bitcoin follows a wave of market panic driven by President Trump’s latest round of trade tariffs. These policies have sparked major losses across global stock markets. On Friday:
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The Nasdaq 100 dropped over 5%,
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The Dow Jones Industrial Average plunged by more than 2,200 points,
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S&P 500 futures are down 4.6%, signaling further pain when U.S. markets open.
Financial commentator Jim Cramer called the situation a “man-made obliteration” and compared it to the 1987 Black Monday crash, where the market fell over 20% in one day.
Investors Brace for Recession: Fear Index Surges
Market fears are also reflected in prediction markets. On Polymarket, the chance of a U.S. recession in 2025 has jumped from under 40% to 65% within days. Traders there also give a 67% probability that Bitcoin will remain below $78,000 by April 11, showing pessimism in the near-term recovery.
Crypto Traders Liquidated: $868 Million Wiped in One Day
According to Coinglass, over $1.2B in long positions across cryptocurrencies were liquidated in just 24 hours — the largest single-day liquidation event in nearly six weeks.
This forced selling is contributing to Bitcoin’s steep decline and is likely to continue if prices drop further.
Bitcoin ETF Outflows
ETF data is also signaling trouble. U.S. spot Bitcoin ETFs saw $258 million in net outflows.
Altcoins Hit Harder: Ethereum, Solana Tumble
Beyond BTC, altcoins are also tumbling, giving more insight into why is bitcoin down today across the wider crypto space.
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Ethereum (ETH) is down 18.8%, trading around $1,460 — its lowest price since March 2023.
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Solana (SOL) has fallen more than 15%, currently priced at $101.
The total crypto market capitalization has dropped by 12% to $2.47 trillion, erasing nearly all the gains made since Trump’s November win.
BTC Options Show Bearish Sentiment Building
Options markets also suggest more downside ahead. According to Deribit, open interest is highest for put options at the $70,000 strike, meaning many traders are betting on further declines. Volatility has increased sharply, and traders are now hedging against further losses.
Bitcoin’s Correlation with Stocks Remains Strong
Despite hopes that Bitcoin could act as a safe haven, its strong correlation with tech stocks has returned another factor why is bitcoin down today.
Analysts had noted that Bitcoin had started to decouple from equities, but the tariff-driven global sell-off has brought Bitcoin back into sync with broader market fears.
What’s Next for Bitcoin? Watching Key Levels
Analysts are closely watching the following levels:
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$75,000, a psychological support that is now being tested.
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$70,000, where many traders have placed protective options bets.
If Bitcoin continues to fall below these levels, more forced liquidations could follow. On the other hand, a bounce-back is possible if confidence returns and institutional buyers step in.
Market Outlook: Can Bitcoin Rebound?
The big question isn’t just why is bitcoin down today, but what’s next? While some traders believe this is just a temporary shakeout, others fear a longer downturn.
Max Keiser has predicted that Bitcoin could rally to $220,000 if the market views it as a true safe haven during economic instability. Others remain cautious, waiting for a confirmed recovery above $92,000 to regain bullish momentum.
For now, why is bitcoin down today can be traced to a combination of ETF outflows, liquidation cascades, and fears over the global economic impact of Trump’s aggressive trade tariffs.
These overlapping issues have placed pressure on Bitcoin’s price, leaving traders and investors on high alert as the market seeks stability.
