News
  • Mustafa Mulla
    author-profile

    Mustafa Mulla right arrow

    Author

    Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

    • author twitter
    • linkedin

  • 2 minutes read

Bitcoin Drops to $77K as Tariffs Shake Markets—$1B in Liquidations at Risk!

  • currency-symbol BTC $ 85,627.89 (1.15%) top gainer
Story Highlights
  • Bitcoin drops to $77K as trump's new U.S. tariffs cause uncertainty in financial markets.

  • Meanwhile, U.S. 30-Year Treasury Yields surge to 4.98%, raising inflation and debt concerns.

  • On the flip side, Bitcoin may face $476M liquidation below $74K, while short traders risk $982M above $78K.

Bitcoin, the world’s largest cryptocurrency, has dropped sharply, nearing $77,000, as markets react to new global tariffs announced by U.S. President Donald Trump. The sudden decline also triggered a selloff in U.S. Treasury bonds, pushing 30-year yields higher and raising concerns about the wider economy.

Bitcoin is now hovering near key price levels that could lead to major market moves. If it falls below $74,000, around $476 million worth of positions could be liquidated, potentially causing a liquidity crisis. But if it climbs above $78,000, short sellers could face nearly $982 million in losses, leading to a possible price spike.

What’s behind this sudden market shake-up? Here’s what’s happening – and why traders are watching Bitcoin’s next move so closely.

Bond Market Sends Warning Signs

The new global tariffs introduced under Trump’s administration have created fresh uncertainty in the markets. As a result, yields on 30-year U.S. Treasuries have jumped above 4.98%, reflecting rising worries about inflation and growing government debt.

Traditionally, U.S. bonds are seen as a safe investment during uncertain times. But the sharp rise in yields is making investors nervous, suggesting possible instability. This has affected not just bonds, but also other assets like Bitcoin.

Some analysts think this market reaction might be caused by forced liquidations from big financial players—rather than natural market movement.

Echoes of the Past: A 1982-Style Shift?

Financial analyst Jim Bianco pointed to this sharp change in the market on X, comparing it to a similar move in 1982—when interest rates were extremely high. He said sudden shifts like this usually happen because of large-scale liquidations, not regular trading activity.

Bitcoin’s Next Move Could Be Volatile

With Bitcoin sitting near important price levels, traders are preparing for more volatility. Data from Coinglass shows that if the price drops below $74,000, it could trigger a wave of long position liquidations, pushing prices even lower.

On the other hand, if the price rises above $78,000, short traders might be forced to buy back in, which could drive prices sharply higher.

Long-Term Outlook: Buy The Dip!

Despite the current uncertainty, some analysts believe this dip could be a chance to buy. Ryan Lee, Chief Analyst at Bitget Research, thinks that if the market stabilizes and pro-crypto policies appear, Bitcoin could rise to $95,000–$100,000 by the end of 2025. That could push the total crypto market value back above $3 trillion.

As of now, Bitcoin is trading around $77,670—down about 2% in the last 24 hours. Its total market cap is approximately $1.54 trillion, showing just how much weight it still carries in the financial world.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

It’s not just crypto on edge – Wall Street and Main Street are both watching the same charts, holding their breath.

FAQs

Why is Bitcoin dropping today?

Bitcoin is down due to market fears over new U.S. global tariffs, sparking bond selloffs and wider economic uncertainty.

Can Bitcoin recover from the current dip?

Analysts say Bitcoin could rebound to $95K–$100K by 2025 if markets stabilize and pro-crypto policies emerge.

Show More

Related Articles

Back to top button