Bitcoin fell below $77,000 as U.S. recession fears rattled markets, with Ethereum and other cryptocurrencies also tumbling. Investor sentiment weakened after Donald Trump's comments on economic uncertainty. Analysts warn that inflation concerns and interest rates may drive further volatility, while upcoming labor data could determine Bitcoin's next move.
The cryptocurrency market faced a fresh wave of volatility on Tuesday, with Bitcoin sliding below $77,000 amid mounting concerns over a potential U.S. economic downturn. The flagship cryptocurrency fell 3.2% to $79,937 before briefly touching a low of $76,624. Ethereum also saw a sharp decline, tumbling 7.5% to $1,911, while Solana, XRP, Cardano, and Dogecoin suffered similar losses. The global crypto market cap fell by 4.3% to $2.6 trillion, reflecting widespread investor anxiety.
Market analysts attribute the downturn to growing economic uncertainty, particularly following comments from former U.S. President Donald Trump, who suggested a "period of transition" in the economy. While he stopped short of predicting a recession, the lack of clarity triggered a sell-off in both crypto and traditional markets. Avinash Shekhar, CEO of Pi42, described Bitcoin’s dip below $80,000 as a key psychological test, noting that fears of rising inflation and interest rate policies continue to impact investor sentiment. Meanwhile, traders are closely watching upcoming labor market data, which could influence Bitcoin’s ability to recover lost ground.
