Bitcoin prices fell sharply on Tuesday, briefly touching a four-month low as investors reacted to mounting concerns over a possible U.S. recession and uncertainty surrounding trade tariffs under President Donald Trump.
The broader cryptocurrency market also suffered losses, with Trump’s recent announcement of a national stockpile failing to spark investor confidence. A crypto summit held at the White House last week provided little clarity on his administration’s regulatory stance, further dampening sentiment.
Bitcoin has been under sustained pressure, marking three consecutive weeks of losses. Even a fresh capital raise by Strategy—the world’s largest corporate Bitcoin holder—failed to provide significant support to the cryptocurrency.
By 05:50 GMT on Tuesday, Bitcoin had dropped 2.4% to $80,289.1, after earlier plunging to $76,677.1—its lowest level since late 2024.
The decline in Bitcoin mirrored a broader downturn in global stock markets, as risk appetite dwindled in response to increasing fears of a U.S. recession. Trump’s threats of additional tariffs also added to market jitters. The president recently targeted Canada over retaliatory measures to his 25% tariffs and reiterated his plan to implement reciprocal tariffs starting in early April.
In a recent interview, Trump refused to dismiss the possibility of a recession, instead acknowledging potential economic turbulence as his administration pushes forward with its policies.
Cryptocurrencies tend to react more negatively to economic uncertainty compared to other risk-driven assets due to their highly speculative nature. This trend has kept digital currencies under pressure throughout 2025, with Bitcoin losing nearly 14% since the start of the year.
Meanwhile, Strategy’s announcement of a $21 billion share offering to raise capital for additional Bitcoin purchases did little to buoy market confidence. The company has made Bitcoin accumulation a core part of its business strategy, yet it remains in a precarious position, sitting on approximately $4 billion in unrealized losses from purchases made in late 2024. Despite investing $21 billion in Bitcoin since November 10, the value of those holdings has now depreciated to $17 billion.
The downturn in Bitcoin was mirrored across the cryptocurrency sector, with no significant buying support emerging amid the economic uncertainty. Ether, the world’s second-largest cryptocurrency, plunged 8% to $1,900.70—its lowest level since late 2021—adding to the pessimism in digital asset markets.
As investors navigate growing recession fears and shifting trade policies, the outlook for cryptocurrencies remains clouded with volatility and uncertainty.
