Bitcoin fell on Tuesday, briefly hitting a fresh four-month low as risk appetite was eroded by growing concerns over a U.S. recession and uncertainty over more trade tariffs under President Donald Trump.
Broader crypto markets also sank, as Trump’s recently announced national stockpile sparked little enthusiasm. A crypto summit held at the White House last week also offered few cues on Trump’s plans for regulation.
Bitcoin remained under pressure after clocking three weeks of steep losses, with the crypto also taking little support from an announcement of a fresh capital raise from Strategy, the world’s biggest corporate Bitcoin holder, to buy more of the crypto.
The world’s biggest crypto fell 2.4% to $80,289.1 by 01:50 ET (05:50 GMT), having earlier fallen as low as $76,677.1.
Bitcoin pressured by recession, tariff risks
Bitcoin’s losses tracked steep declines in global stock markets, as appetite for risk-driven assets was dented by increasing fears of a U.S. recession.
Threats of more tariffs from Trump also weighed, as he lashed out against Canada for retaliatory measures over his 25% tariffs, while repeating his plans for reciprocal tariffs from early-April.
Trump in a recent interview also declined to rule out the possibility of a U.S. recession, instead flagging some economic turbulence as his administration carries out its reforms.
Bitcoin and crypto assets tend to log a much stronger negative reaction to economic headwinds than other risk-driven assets, given their highly speculative nature. This trend has kept crypto markets trading consistently lower so far in 2025.
Bitcoin has lost nearly 14% so far this year.
Strategy’s $21 bln fundraising plan sparks little joy
Bitcoin also took little support from Strategy (NASDAQ:MSTR) announcing a $21 billion share offering to raise more capital.
The company said it will use most proceeds from the raise to buy more Bitcoin- a trade that has become its core business.
But Strategy is also sitting on a roughly $4 billion loss from its Bitcoin purchases through late-2024, when the price hit a series of record highs above $100,000. Strategy spent $21 billion on Bitcoin since November 10, with declines in the crypto’s price now valuing the purchases at $17 billion.
Crypto price today: altcoins track Bitcoin losses
Broader crypto prices fell amid few positive cues for markets, with bargain buyers also steering clear amid increased economic uncertainty.
World no.2 crypto Ether fell 8% to $1,900.70- its lowest level since late-2021.
XRP, Solana, and Cardano shed between 1.6% and 3.1%.
Among meme tokens, Dogecoin fell 7.9% while $TRUMP hit a record low below $10.
