A Sunday slide in Bitcoin could spread into the US market on Monday.
BTCUSD – Daily Chart
After the failure to hold gains ahead of $90,000, BTC has slipped to $80,000 and threatens the support at $73,745. That was a resistance level in March 2024.
Bitcoin was seen sliding after markets were not impressed by the strategic reserve plan from Donald Trump’s administration. That was largely due to the fact that the reserve was going to be largely built with coins that have been seized by the authorities, rather than buying in the spot market.
There are also fears for the US economy as Trump’s tariffs come into effect.
“There could be a little disruption,” said US President Donald Trump when asked about the impact of his tariff and budget-cutting policies. “If you look at China, they have a 100-year perspective … we go by quarters,” he continued. “What we’re doing is building a foundation for the future”.
Stocks in the United States have also been rattled over the last two weeks and now trade back at levels seen at his election win.
Market participants had cheered the arrival of Trump to bring a business boost but his policies have rattled the status quo with tariffs against Canada, Mexico and China.
Retaliation threats from other countries have set the stage for a fallout that could see wild swings in GDP, or other economic data in certain countries over the coming months and raise recession risks.
Bitcoin’s market capitalization has dropped by $230 billion since Thursday and risks dragging the crypto sector lower if support levels continue to be tested in the week ahead. That could depend on the activity in US stocks as they also look for a bottom in recent falls.
