Bitcoin and other major cryptocurrencies tumbled on Tuesday as growing concerns over a potential U.S. recession rattled investors.
The world’s largest cryptocurrency fell 3.2%, dropping to $79,937 before briefly dipping to a daily low of $76,624. Ethereum followed with a sharp 7.5% decline, slipping to $1,911, while Dogecoin plummeted 8.5%. The overall crypto market cap shrank 4.3% to $2.6 trillion.
The selloff was triggered by renewed economic uncertainty after former U.S. President Donald Trump hinted at a “period of transition” in a Fox News interview but gave no clarity on whether his proposed tariffs could push the economy into recession. The uncertainty spilled into traditional markets, affecting stocks, the U.S. dollar, and Treasury yields.
“Bitcoin’s dip below $80,000 signals a major correction in the market,” said Avinash Shekhar, CEO of Pi42. “Investors are reacting to macroeconomic fears, including inflation and interest rate concerns.”
Analysts believe upcoming U.S. job data could be a key factor in Bitcoin’s next move. “If the labor market shows resilience, we could see BTC bounce back toward $84,000,” said Mudrex CEO Edul Patel.
Despite the downturn, Bitcoin maintains a 61.04% market dominance, with its market cap at $1.585 trillion. Trading volume spiked 53.14% to $58.13 billion, signaling high volatility.
“Bitcoin’s ability to reclaim and sustain $80,000 will be crucial for market stability,” noted Vikram Subburaj, CEO of Giottus.
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