Bitcoin’s (BTC) price has dropped by over 2.5% over the last 24 hours to $85,100 as Trump’s latest tariffs continue to put downward pressure on global markets and cryptocurrencies.
BTC/USD daily chart. Source: Cointelegraph/TradingView
Key takeaways:
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Bitcoin’s drawdown follows US President Donald Trump’s announcement for automotive tariffs.
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Bitcoin drops alongside US equities amid strengthening correlation.
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Bearish BTC price calls emerge as trader sentiment sours.
Bitcoin price declines with risk-on assets
BTC’s ongoing price drop mirrors similar declines in the broader risk-on market due to unfavorable macroeconomic conditions.
Key points:
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The crypto market’s combined market capitalization has dropped by over 2.6% in the last 24 hours, aligning with selloffs in US stocks.
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The S&P 500 dropped by 0.33% to close the day at 5,693.31 on March 27, while the Nasdaq composite index declined by 94 points (-0.53%).
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The Dow Jones index lost 0.37% to close the trading day on March 27 at 42,299.70.
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This is in response to President Trump’s announcement of a 25% tariff on all imported automobiles, effective April 2, 2025.
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Earlier in March, Trump imposed 25% tariffs on all goods from Mexico and Canada and 10% tariffs on Chinese imports.
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Canada and Mexico have announced intentions to impose retaliatory tariffs on US goods, escalating trade tensions and raising concerns about the impacts of a full-blown trade war.
“Markets are expecting Trump’s April 2nd reciprocal tariffs day to be the end of uncertainty,” said capital market commentator The Kobeissi Letter in a March 26 post on X.
Related: ‘Bitcoin Macro Index’ bear signal puts $110K BTC price return in doubt
The Kobeissi Letter believes that “it will be the exact opposite,” with tech stocks losing over $400 billion over the past week.
“The trade war is back.”
30-day performance of US tech stocks. Source: Financial Visualizations
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Bitcoin is viewed as a risk asset in the short term, often dropping when traditional markets falter.
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Bitcoin and top altcoins have historically declined during periods of economic turbulence, e.g., the COVID-19 sell-off in March 2020.
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As of March 28, the weekly correlation between BTC and US stocks was 0.88.
Bitcoin and S&P 500’s weekly correlation. Source: Cointelegraph/TradingView
Bitcoin traders brace for BTC’s sub-$80K pullback
Analyzing low-timeframe BTC price action, popular analyst AlphaBTC was slightly pessimistic about Bitcoin’s recovery in the short term.
“Bitcoin is losing the weekly open” at $86,000, he wrote in part of an X post about the hourly chart.
“Looks like $BTC has finally made up its mind and is heading to that monthly open and max pain for the options expiry.”
BTC/USD hourly chart. Source: AlphaBTC
AlphaBTC referred to the March 1 open at $84,300, which BTC price must hold to avoid ending the month in red and risk sinking deeper.
Others recommended taking a longer-term view amid heightened volatility, with Bitcoin up a mere 1.6% in March at the time of writing.
“BTC’s range breakdown and sweep might be a bit slower,” fellow trader Daan Crypto Trades said in part of his X post.
This pullback is accompanied by the “sharpest equities sell-off since the Yen Carry Trade issues,” he explained about BTC price action during the last range sweep in August 2024.
According to Daan Crypto Trades, Bitcoin needs to reclaim $90,000 to confirm that the range sweep was “just a shakeout” since this area remains a key technical barrier.
“Price will still be heavily influenced by headlines, and with the 2nd of April (Tariff/Liberation Day) approaching, volatility is a guarantee. Would not be surprised to hang around the mid-80Ks for a while until that blows over.”
BTC/USD three-day chart. Source: Daan Crypto Trades
More bearish predictions nonetheless came from those wary of the macro implications. Analyst and MN Capital founder Michael van de Poppe believes Bitcoin has started to “look slightly less good,” warning of a retest of the $78,000-$80,000 range if the support at $84,000 is lost.
Trend remains to be upwards for $BTC, but it starts to look slightly less good.
It’s shaking.
Drop sub $84K and I think we’ll see a test at $78-80K and perhaps lower before we’ll bounce back up. pic.twitter.com/nZaweAv9nv
— Michaël van de Poppe (@CryptoMichNL) March 28, 2025
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.