Bitcoin, the world’s leading cryptocurrency, continues its downward trend as its value dropped to approximately $77,000, amid renewed global economic uncertainty and increasing market volatility.
The latest dip comes on the heels of growing fears surrounding the ongoing trade tensions between major world powers, particularly China and the United States. Experts believe that China’s announcement of retaliatory tariffs on American goods has triggered investor caution, contributing to the current sell-off in the crypto markets.
According to market data, more than $1.2 billion worth of leveraged crypto positions were liquidated within a 24-hour period, affecting not just Bitcoin, but also smaller altcoins like Ethereum, Solana, and Avalanche. These tokens saw even sharper percentage drops, signaling a broad-based downturn.
Market analysts point to the increasing sensitivity of digital assets to macroeconomic developments, especially in light of potential interest rate hikes, inflation data, and global political unrest. Some investors have begun shifting capital back to more stable assets in response to the volatility.
Despite the drop, some crypto enthusiasts remain optimistic, describing the dip as a healthy correction that may lead to another buying opportunity. Meanwhile, financial experts have advised investors to exercise caution and adopt long-term strategies in navigating the ever-fluctuating world of cryptocurrencies.