Bitcoin Stays Below $80K as Market Faces Recession and Tariff Pressures

Image Credit: Reuters

Bitcoin dropped on Tuesday, briefly hitting a new four-month low as investor confidence weakened due to growing fears of a U.S. recession and the uncertainty surrounding additional trade tariffs under President Donald Trump.

The wider cryptocurrency market also saw losses, with little positive reaction to Trump’s recent announcement of a national crypto stockpile. The White House's crypto summit last week provided few details on the administration's regulatory intentions, which contributed to market uncertainty.

Bitcoin, which had already suffered three weeks of significant losses, continued its downward trend despite an announcement from Strategy, the largest corporate holder of Bitcoin, regarding a capital raise to buy more of the digital asset. However, this move failed to bolster Bitcoin's price.

At 01:50 ET (05:50 GMT), Bitcoin had fallen 2.4% to $80,289.1, briefly dipping as low as $76,677.1.

Bitcoin's Struggles Amid Recession and Tariff Concerns

Bitcoin's drop mirrored declines in global stock markets, as concerns about a potential U.S. recession dampened risk appetite. Trump’s ongoing tariff threats, especially against Canada, also put additional pressure on markets. In a recent interview, Trump acknowledged the possibility of some economic turbulence as his administration moves forward with its reforms.

Cryptocurrencies, particularly Bitcoin, are more sensitive to economic challenges than other assets, and this trend has kept crypto markets in a steady decline through 2025. So far this year, Bitcoin has lost nearly 14%.

Strategy’s Fundraising Plan Fails to Lift Market Sentiment

Bitcoin's decline was also not helped by Strategy’s announcement of a $21 billion share offering to raise funds, most of which will be used to buy more Bitcoin. Despite this, the company is sitting on a significant loss from its Bitcoin investments, which are now valued at $17 billion, down from the $21 billion spent during Bitcoin's price surge in late 2024.

Crypto Market Sees Broad Declines

The broader crypto market followed Bitcoin's lead, with few positive developments to inspire buying interest amid growing economic concerns. Ether, the second-largest cryptocurrency, fell 8% to $1,900.70, its lowest point since late 2021. Other altcoins like XRP, Solana, and Cardano saw losses between 1.6% and 3.1%.

In the meme token space, Dogecoin dropped 7.9%, while $TRUMP token hit a record low of below $10.

 

 

 

 

 

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