‘Black Monday’ Strikes the Crypto Market as Bitcoin Plunges Below $77,000—Has the Bear Market Begun?

Donald Trump’s ‘Liberation Day’ had a deadly impact on not only the crypto markets but also the global stock markets, including countries like China, Japan, Taiwan, the UK, Germany, etc. As the tariffs and the reciprocal tariffs escalated, the uncertainty increased, which has strengthened the bearish action. The markets recorded a consecutive 10% drop on the second day, reflecting a historic rarity that has occurred only four times in history: October 1987, October 2008, March 2020, and now in April 2025. 

It is important to note that all of the previous events led to significant stock market crashes, such as the ‘Black Friday’ in 1987, the 2008 housing bubble, and the 2020 COVID-19 pandemic. These led to a major drop, which kept the markets consolidated for a long time. Now the question arises whether the 2025-Tariff war may have a similar impact on the global stock markets and the crypto markets.

Crypto Market No More Decentralised

Ever since the entry of the institutions, the crypto market has become more centralized, with a large chunk of BTC being held by major 4 to 5 companies. Microstatergy had begun to accumulate after the March 2020 crash in September 2020 that triggered the 2021 bull run. Since then, the company has been accumulating aggressively and now holds over 500,000 BTC, 2.25% of the total supply. 

Besides, a similar amount of BTC is being held by Blackrock’s (IBIT) shares, which could be a matter of concern. Previously, the crypto markets gained strength while the stock markets faced some turbulence. However, the growing correlation between the markets suggests that more dreadful days are on the horizon as the stock markets are predicted to face another 15% to 20% plunge in the coming days. 

What’s Next for Bitcoin’s (BTC) Price Rally?

After losing the pivotal support at $81,017, the Bitcoin price continued to drop, hinting at testing the support at $76,763. Meanwhile, the bulls triggered a rebound at $76,666, but the possibility of an extended bearish trend persists. The price has entered a ‘Do or Die’ range, which may confirm whether the ongoing pullback is a healthy correction or the beginning of a bear market. 

The historical chart of Bitcoin suggests the price is in real danger. The current global markets have left no room for a rebound, and hence, the lower targets have been activated. The weekly Ichimoku Cloud is heading for a bearish crossover, while the weekly RSI dropped below 45 for the first time since the rise in early 2023. Interestingly, the RSI plunged to the lower threshold only in times of a bear market, back in 2018, 2020 and 2022. If the levels fail to hold at 40, then the RSI is feared to reach 30, which may drag the BTC price below $70,000. 

Hence, the current market sentiments are extremely fearful and hence, holding can be the perfect strategy one can apply instead of panic selling. However, once the conditions improve, the Bitcoin (BTC) price will rebound and rise.