April 7, 2025 , Bitcoin (BTC) is facing downward pressure as global financial markets reel from escalating geopolitical tensions. The world’s largest cryptocurrency fell below the $80,000 mark over the weekend, currently trading around $79,164, down over 5% from the previous session. The move follows a broader risk-off sentiment in global markets sparked by new trade barriers and retaliatory threats between the United States and China.
Over the past 24 hours, Bitcoin reached an intraday high of $83,677, before tumbling to a low near $77,127, reflecting heightened volatility amid uncertainty. The sell-off isn’t limited to BTC — Ethereum (ETH) also saw a sharp drop, declining nearly 10% to trade at approximately $1,617.
The Trigger: Trade Tensions Reignite Market Fears
This latest wave of market turbulence comes on the heels of President Trump’s announcement of sweeping new tariffs on Chinese imports. In response, Chinese officials have promised matching retaliatory measures, reigniting fears of a new trade war. Traditional markets reacted swiftly, with major indices dropping sharply in Friday's and Monday's trading sessions.
While Bitcoin has often been touted as a hedge against traditional financial instability, its recent price action suggests it remains tightly correlated to broader macroeconomic shifts — at least in times of heightened global risk.
Investor Sentiment Shaken
Despite Bitcoin’s strong performance earlier this year — buoyed by institutional ETF approvals and increased adoption — the current correction is a reminder of its volatility. Analysts note that while the long-term fundamentals remain intact, short-term sentiment is being driven by global news cycles, central bank policies, and shifts in investor risk appetite.
What's Next?
With inflation data and central bank guidance expected later this week, all eyes will be on whether Bitcoin can hold key support levels in the mid-$70,000 range. Many investors are also watching for institutional inflows, which had been a key driver in BTC’s rally to all-time highs earlier in the year.
For now, Bitcoin bulls are regrouping — but the crypto market remains in reactive mode, navigating through a maze of economic headlines and global uncertainty.
