The financial markets are reeling under renewed pressure as US trade policy uncertainty and recession fears ripple across global stocks and crypto assets. Bitcoin (BTC), often seen as a hedge against traditional market instability, was not immune to the turbulence, falling below $76,000 over the weekend amid surging volatility and mounting investor caution.

According to data from TradingView, BTC/USD dropped 3% over the past week, breaking below the $80,000 threshold as geopolitical and economic tensions intensified. 

As per CoinMarketCap’s data, BTC is currently trading at $77,252, down 6.65% in the past 24 hours. Ethereum (ETH) fared even worse, plunging 15.51% to $1,507.97. Market sentiment has deteriorated significantly, with CoinMarketCap’s Fear and Greed Index dropping below 20, signaling extreme fear.

Data from Coinglass shows the impact of this sharp market correction has been severe. Over the past 24 hours, 459,941 traders were liquidated, with total liquidations reaching $1.42 billion. Of that, Bitcoin accounted for $9.35 million in liquidations, while Ether saw $4.72 million wiped out.

The broader market selloff comes in the wake of former President Donald Trump’s reintroduction of sweeping tariffs—moves that triggered immediate shockwaves across equity markets.‍

Trillions Wiped Off Global Markets

Market analyst Holger Zschaepitz reported via X (formerly Twitter) that the tariff announcements had wiped out over $8.2 trillion in global stock market value, surpassing the losses seen during the worst week of the 2008 financial crisis.

The S&P 500 and Nasdaq Composite posted their steepest losses since the COVID-19 pandemic, falling 6% in a single session. The Nasdaq 100 has now entered bear market territory, following a 20% drop from its recent high.

CNBC's Jim Cramer reignited fears of a 1987-style market crash, stating on social media, "It's tough to build a new, weaker, world order on the fly. Frantically trying to do it but don't see anything yet that takes the October 87 scenario off the table yet. Those who bottom-fished are sleeping with the fishes ...so far."‍

Industry Voices Weigh In

Amid the chaos, respected economist Adam S. Posen, president of the Peterson Institute for International Economics, sharply criticized the tariffs, stating:

“This will not generate a fraction of the rise in employment in US manufacturing that the administration claims. In fact, it will reduce US companies' share of global auto sales… US recession risk is going up, but expect inflation either way.”

He warned that retaliation from other countries could compound the damage, saying, “The more retaliation, the more harm to everyone… though both will suffer.”

Crypto-focused trading firm QCP Capital noted that short-term volatility in the Bitcoin options market has surged, with investors seeking downside protection. The firm said in a market update’

“As markets continue to plunge into correction territory, BTC and ETH Friday implied vols spiked above 85v and 130v, respectively, as the market rushed to cover their downside exposure. The VIX surged above 60, signalling extreme panic and fear across risk assets.” 

“China's stock market wasn't spared either, as it suffered the worst single-day crash since 2008, likely a delayed reaction from Friday's retaliation, where China imposed sweeping 34% tariffs on all US goods.”

“With just two days to go until the 9 April implementation of higher customs tariffs, the global economy teeters on the edge of a full-scale economic war. Remarkably, Trump's "all-in" appears to be drawing engagement, with reports suggesting over 50 countries reaching out to initiate trade negotiations.”‍

Conclusion

As the week unfolds, all eyes are on both macroeconomic data and market reaction to policy uncertainty. With investors seeking clarity amid chaos, Bitcoin’s role—as either a safe haven or another risk asset—remains under close watch.