Bitcoin Drops Below $80K as Weekend Crypto Liquidations Surpass $590M Amid Rising Global Uncertainty
Bitcoin slipped below the $80,000 threshold over the weekend, marking a turbulent turn for the world's largest cryptocurrency as global economic uncertainty rattled investor confidence. Sunday’s sharp decline coincided with over $590 million in crypto liquidations, signaling heightened caution among traders.
Market Volatility Intensifies Amid Tariff and Geopolitical Fears
The downturn comes as global markets remain on edge over renewed tariff threats proposed by former U.S. President Donald Trump, combined with escalating geopolitical tensions. The shift in sentiment prompted a widespread pullback across risk assets, including cryptocurrencies and equities.
On Sunday alone, Bitcoin’s decline led the broader crypto market downward by 2.45%, trimming total market capitalization to $2.59 trillion. Bitcoin continues to dominate the space, holding 62% of the market share, followed by Ethereum at 8%.
Meanwhile, $252.79 million in crypto derivative positions were liquidated on Sunday. Notably, $207 million of that came from long positions, with Ethereum traders accounting for $72 million in liquidations — underscoring the widespread impact of the downturn.
Traders Shift Bearish After Weak Start to 2025
The long-short ratio for Bitcoin has dipped to 0.89, with short positions now making up nearly 53% of market activity. This marks a notable sentiment reversal, as more traders bet against Bitcoin’s near-term performance.
The decline follows a rough first quarter for Bitcoin, which ended Q1 down 11.7% — its worst start to the year since 2014. That weakness extended to traditional financial markets as well: the Nasdaq 100, S&P 500, and Dow Jones all officially entered correction territory last week, each recording their steepest weekly losses since 2020.
Looking Ahead: Macro Trends Continue to Drive Crypto Sentiment
Bitcoin’s price remains closely linked to broader macroeconomic dynamics. Analysts are watching the upcoming U.S. market open closely, with expectations of continued volatility following Federal Reserve Chair Jerome Powell’s recent comments.
Powell cautioned that proposed tariffs could heighten inflation while simultaneously dragging on economic growth — a combination that raises the specter of stagflation. Such a scenario would complicate monetary policy, as tools to curb inflation may further suppress already fragile growth.