- Bitcoin plunges below $77,000, Ethereum and others drop over 14%.
- Market crash fueled by global tariffs, Trump’s “Liberation Day,” and recession fears.
- Analysts eye $72K as Bitcoin’s critical next support; Fed intervention could shift sentiment.
The crypto market has entered a steep downturn, with over $1.3 trillion in value erased since January 2025. Bitcoin has dropped more than 10%, falling under $77,000 after failing to hold the crucial $80K support.
Adding to the pressure are rising bets that the U.S. Federal Reserve may soon cut interest rates in a bid to avoid a looming recession. While such a move could inject more liquidity into markets, it also reflects deeper economic uncertainty.
Crypto’s Breaking Point: What Triggered the $1.3 Trillion Collapse in 2025
The broader market meltdown has extended its grip on the cryptocurrency sector, causing unprecedented losses. Bitcoin’s retreat from its all-time high has been swift and severe, with Ethereum and altcoins following in close step. The synchronized fall suggests more than a simple correction—it hints at systemic investor anxiety.
The political backdrop, particularly Trump’s “Liberation Day” declaration and a revival of aggressive tariff policies, has played a pivotal role in rattling markets. These developments have renewed fears of a global trade war, spooking both crypto and traditional financial markets simultaneously.
Traders are now scrambling to re-evaluate positions amid calls for emergency measures. If the Fed signals a readiness to intervene, either by adjusting rates or boosting liquidity, it could halt the free fall. Until then, volatility remains the dominant theme in crypto price action.
Notably, the cascading effect across all digital assets points to a lack of safe havens within the ecosystem. The drawdown has spared no major token, illustrating how tightly linked cryptocurrencies have become to macroeconomic shifts and geopolitical maneuvers.
With the crypto market in turmoil, all eyes are now on central banks and political leaders. What happens next could define the direction of digital assets for the rest of the year.
“Markets are moved more by men than by laws.” – Will Durant
