Bitcoin (BTC) Price Drops Below $82,000, Wiping Out Billions in Market Value

The cryptocurrency market suffered a sharp decline on Sunday as Bitcoin (BTC) tumbled below $82,000, wiping out billions in market value.

The cryptocurrency market experienced a sharp decline on Sunday, with Bitcoin (BTC) falling below the $82,000 level and wiping out billions in market value. The downturn was accompanied by losses in U.S. stock futures, driven by escalating trade tensions and renewed inflation concerns.

Bitcoin, which had reached highs of $88,000 last week, dropped to $81,700, shrinking by 2% over the last 24 hours. However, altcoins were hit harder, with Avalanche (AVAX), Polygon (MATIC), Near (NEAR), and Uniswap (UNI) shrinking by nearly 10%. The market capitalization of the overall crypto market declined by $115 billion in a short time, instilling anxiety among investors.

Ethereum (ETH) fell to $1,775, hitting the lowest point in nearly four years. Another factor contributing to Ethereum’s decline was the lack of demand for spot ETH exchange-traded funds (ETFs), which had not attracted any inflows since March. In contrast, Bitcoin ETFs received more than $1 billion in the first two weeks, indicating that institutional investors were shifting towards BTC from ETH.

The sell-off wasn’t limited to crypto. The S&P 500 and Nasdaq fell 2% and 2.8%, respectively, highlighting investor uncertainty. Crypto-related stocks also took a hit, with MicroStrategy (MSTR) plunging 10% and Coinbase (COIN) dropping 7.7%.

The drop occurred ahead of new tariffs by the United States, set to commence on the 2nd of April, targeting the auto, pharmaceuticals, and semiconductor industries. Some experts have highlighted the increasing risks of inflation, which could negatively affect the market.

In this context, institutional capital withdrawal from risk assets is affecting both the crypto and traditional markets due to the high volatility. This indicates that the correlation between Bitcoin and equities is still significant, and broader economic factors will continue to influence the price of Bitcoin.