Bitcoin falls 7% to below $75,000 as Trump's trade war escalates

Bitcoin has fallen below $75,000 in the past 24 hours, marking the second decline in a week. The price dropped from $80,156 to $74,627 — a sharp decrease of nearly 7%, highlighting the escalating fear in the market as Donald Trump's 104% tariff on Chinese goods officially takes effect. Riskier assets like stocks and cryptocurrencies have been heavily impacted. Bitcoin has now fallen 11% this week, while Ethereum (ETH) leads the altcoin decline with a loss of over 25% this week.

Investors are increasingly worried as the two largest economies in the world engage in a comprehensive trade war. Institutional selling has returned, with BlackRock's iShares Bitcoin Trust (IBIT) dumping 3,296 BTC on Monday. This is the third-largest ETF sell-off since the fund's launch, with a total Bitcoin ETF sell-off amounting to 326 million dollars. Just a few days ago, Bitcoin reached a level of 80,400 dollars in a brief recovery. But the optimism quickly faded and the market fell into what looks like a classic bull trap. Coinglass data shows that 390 million dollars worth of cryptocurrency was liquidated during the sharp correction. Since the beginning of 2025, Bitcoin has fallen more than 18% under Trump's leadership. Analysts warn that the price could drop further to $70,000 or lower if the stock market continues to slide. Experts like Arthur Hayes and Peter Schiff believe that the Fed may need to act soon. Hayes stated, "The Fed is monitoring the situation, everything is collapsing," as bond yields rise while stocks fall - a troubling combination signaling deeper economic stress.