Bitcoin (BTC) price falls below $82,000, wiping out 40% of its value since record highs

Bitcoin's price continues to face downward pressure, falling below $82,000

Bitcoin price fell on Monday, extending losses as fears of new trade tariffs from President Trump’s administration kept traders cautious.

Bitcoin dropped 2% to $81,300 in early Asian hours. The cryptocurrency had slid nearly 40% since hitting record highs around Trump’s January inauguration.

Investors reacted to reports that Trump was preparing to announce reciprocal trade tariffs targeting up to 25 countries. The Wall Street Journal reported that these tariffs could reach 20% against individual nations.

Trump’s tariff plans are set to be unveiled on April 2. The announcement will cover key market sectors and has already sparked uncertainty in global markets.

Markets had been expecting Trump to announce plans for a Bitcoin reserve, but that narrative has taken a back seat to broader economic concerns.

Technical Analysis

Technical analysts are closely watching for a "death cross" pattern in Bitcoin, S&P 500, and Nasdaq, which could indicate further bearish momentum.

This technical formation occurs when short-term moving averages cross below longer-term averages, suggesting a shift in technical momentum.

Some analysts are also pondering whether this could mark the market bottom before any potential recovery.

Bitcoin's price action continues to exhibit a strong correlation with traditional equity markets.

S&P 500 lost approximately $2 trillion in market value over three trading sessions last week.

Some market commentators, including economist Peter Schiff, have been critical of Bitcoin's "digital gold" narrative during this downturn.

Gold has risen to new record highs above $3,090, while Bitcoin is now trading at a significant discount to that level.

Crypto analyst Ali Martinez highlighted another concerning trend. According to Martinez, the global money supply has dropped by nearly $1 trillion over the past two weeks.

One of the current bullish narratives is that #Bitcoin $BTC will rally as global liquidity grows.

But what they aren't telling you is that the Global Money Supply dropped nearly $1 trillion in the past two weeks! https://t.co/FVwzeiKzQW pic.twitter.com/whEwEuG65K

— Ali (@ali_charts) March 30, 2025

Martinez also reported significant selling by Bitcoin miners. Over the past week, miners have sold more than 2,400 BTC, amounting to approximately $332 million.

Recent US PCE (Personal Consumption Expenditures) data showed persistent inflation, raising concerns that monetary policy will remain tight. This outlook creates additional headwinds for risk assets like Bitcoin.

As markets prepare for April, traders will be closely following Trump’s tariff announcement. The policy details could either extend the current bearish trend or provide some relief if less severe than anticipated.