The cryptocurrency market faced significant losses on Tuesday, as major coins like Bitcoin, Ethereum, Solana, XRP, Cardano, and Dogecoin experienced sharp declines amidst growing concerns over U.S. economic growth and trade tensions.
Bitcoin's value dropped by 3.2%, settling at $79,937 after reaching a daily low of $76,624. Ethereum saw an even steeper decline of 7.5%, falling to $1,911. The overall global cryptocurrency market capitalization decreased by 4.3%, standing at $2.6 trillion. Other prominent cryptocurrencies also faced substantial losses, with Dogecoin plunging 8.5%.
Investor sentiment deteriorated further following comments by former U.S. President Donald Trump during a Fox News interview. Trump referred to a "period of transition" but did not provide clarity on whether his tariff policies might lead to a recession.
Market analysts pointed to macroeconomic uncertainties as key drivers of the downturn. Avinash Shekhar, Co-Founder and CEO of Pi42, noted that fears of a potential recession and widespread market sell-offs were amplifying the pullback in crypto prices.
He highlighted Bitcoin’s breach of the $80,000 mark and Ethereum’s drop to a 16-month low as significant indicators of the market's fragility.
Edul Patel, CEO of Mudrex, emphasized the importance of upcoming economic data for market recovery. He suggested that positive labor market statistics could help Bitcoin reclaim the $84,000 level. Meanwhile, Vikram Subburaj, CEO of Giottus, stressed the critical role of Bitcoin maintaining stability above $80,000 for broader market recovery.
Despite these challenges, trading activity surged as investors sought to reposition themselves amid heightened volatility. Bitcoin's trading volume rose by 53.14% to $58.13 billion, though its market cap declined to $1.585 trillion with a dominance rate of 61.04%.
