Bitcoin Starts the Week Around $81,800, Marking a 1.98% Decrease Over the Past 24 Hours

The sustained decline has triggered roughly $220 million in liquidated crypto positions, extending Bitcoin's streak of lower lows to a seventh consecutive day.

Bitcoin price slipped further on Monday, extending its streak of lower lows to a seventh consecutive day as sustained declines triggered roughly $220 million in liquidated crypto positions.

Bitcoin began the week at around $81,800, marking a 1.98% decrease over the past 24 hours. This continues a weeklong downtrend that has seen the asset fall over 7% from its March 25 local peak of $88,400.

The sustained decline has triggered roughly $220 million in liquidated crypto positions, according to CCChartData. These liquidations were largely concentrated on leveraged long positions in BTC, suggesting that traders were heavily betting on the asset to continue rallying. However, the anticipation of former President Donald Trump’s “Liberation Day” on April 2, during which he is expected to unveil sweeping “reciprocal tariffs,” has triggered a derisking trend across spot markets.

This derisking move reduces demand and increases investor hesitation, ultimately contributing to further price declines.

The global crypto market capitalization has dropped to $2.65 trillion, a 1.77% decrease over the same 24-hour period, while daily trading volume has fallen by 1.4% to $57 billion.

Macroeconomic Stress and Tariff Uncertainty Erode Market Confidence

The buildup of macroeconomic anxiety and the threat of U.S. tariffs have weighed heavily on both crypto and traditional financial markets.

Rising trade tensions and the threat of a U.S. recession are prompting institutions and traders to unwind risky positions and seek safer assets, leading to selling pressure across equities and cryptocurrencies.

Core PCE data released last week indicated higher-than-expected inflation, while consumer confidence declined to its lowest level in over a decade.

Additionally, Goldman Sachs has raised its recession forecast from 20 percent to 35 percent due to elevated geopolitical and economic risk. This unbalanced view of the U.S. economy, tipped toward negative outlooks and difficulties, is rendering traditional safe-haven assets like gold more attractive.

The PCE price index rose 4.7% year-over-year in February, higher than the expected 4.3% and up from January's 4.6% increase. This was the largest annual gain since the third quarter of 2022.

The price index exluding food and energy rose 3.8% year-over-year in February, meeting expectations and slowing from January's 3.9% increase. This was the smallest annual gain in two years.

Finally, the month-over-month increase in PCE was 0.5% in February, higher than the expected 0.3% and December's 0.1% increase. This was the largest monthly gain since May 2022.

This unbalanced view of the U.S. economy, tipped toward negative outlooks and difficulties, is rendering traditional safe-haven assets like gold more attractive.

The sustained decline in Bitcoin price coincides with widespread losses across the broader digital asset market.

The global crypto market capitalization has dropped to $2.65 trillion, a 1.77% decrease over the same 24-hour period, while daily trading volume has fallen by 1.4% to $57 billion.

'Liberation Day' Set to Test Market Resilience

The upcoming tariff announcement will likely be a key inflection point for crypto and broader financial markets.

Trump’s April 2 “Liberation Day” promises tariff hikes designed to reduce U.S. dependence on foreign goods, with targets including the European Union, South Korea, Brazil, and India, as CNBC reported.

Goldman Sachs projects these duties could raise inflation and unemployment while stalling economic growth. Their forecast includes a potential increase in tariff rates by 15 percentage points, although carveouts for certain products and countries could reduce the effective increase to 9 percentage points.

According to Reuters, the immediate market impact will depend on the breadth and timeline of tariff implementation, particularly whether other nations respond in kind. If retaliation occurs, it could initiate a feedback loop of escalating trade restrictions.

This scenario poses a significant challenge to traders and institutions, who must navigate an unpredictable political landscape with the potential for rapid shifts in market trends.

If other countries retaliate with their own tariffs or trade restrictions, it could lead to a vicious cycle of escalating trade tensions. This scenario would likely increase market volatility and create difficulties for traders and institutions to manage their positions and investments.

On the other hand, if other countries do not retaliate and accept the U.S. tariffs, the immediate impact might be less severe. However, the long-term consequences of these tariffs on global trade flows and economic interdependence remain a pressing concern.

Ultimately, the coming days will be critical for assessing resilient investor sentiment in the face of potential policy shocks and persistent macro headwinds