Bitcoin Drops to Near Two-Week Low Amid Trump Tariff Fears and Recession Concerns

Bitcoin and Crypto Markets Slide Amid Economic Uncertainty

Bitcoin dipped to a near two-week low on Monday, trading at $81,300, as investor sentiment was rattled by fears of stricter trade tariffs under U.S. President Donald Trump and growing concerns about a potential U.S. recession. The cryptocurrency fell 1% to $82,045.2 by early Monday morning, extending its recent downward trend.

Trump Tariffs and Recession Fears Weigh on Markets

The broader crypto market was pressured by reports that Trump is considering imposing higher tariffs on up to 25 countries, with rates as high as 20%. These measures could disrupt global trade and trigger retaliatory actions, further destabilizing the economy. Additionally, Goldman Sachs raised its probability of a U.S. recession in the next 12 months to 35%, citing tariff uncertainty, sticky inflation, and weakening consumer and business sentiment.

Bitcoin and Altcoins Suffer Losses

Bitcoin's decline has wiped out nearly 40% of its value since reaching record highs in January. The cryptocurrency's struggles reflect a broader risk-aversion trend, with altcoins also posting significant losses. Ether, the second-largest crypto, fell 1.5% to $1,809.93 and is down 19.2% in March, hitting a 16-month low. XRP dropped 3.5%, while Cardano and Solana also saw declines. Meme tokens, including Dogecoin and $TRUMP, were not spared, with Dogecoin falling 2.7%.

On-Chain Data Adds to Selling Pressure

Bitcoin traders were further spooked by on-chain data showing the transfer of approximately 4,000 Bitcoins, worth around $332 million, onto the Kraken crypto exchange. Such movements often signal potential sell-offs, adding to the downward pressure on prices.

Broader Economic Concerns Impact Crypto

The crypto market's struggles coincide with a strong U.S. inflation reading on Friday, which further fueled recession fears. Speculative assets like cryptocurrencies tend to underperform during periods of economic uncertainty, as investors seek safer havens. The combination of tariff threats, recession risks, and inflation concerns has created a challenging environment for crypto assets.