Bitcoin and crypto stocks like Strategy are plummeting as inflation fears and new US tariffs put investors on alert.
The crypto market is coming under pressure again. Bitcoin fell to $82,100 over the weekend, while Ethereum fell below the $1,800 mark. XRP also suffered losses and is now trading at $2.08.
Strategy, considered one of the largest institutional Bitcoin investors, was particularly hard hit by this development. The company’s shares plummeted by almost 11 percent to $289.41 (as of Monday, 8:30 a.m. CET). This continues the downward trend of recent weeks, in which both cryptocurrencies and technology-oriented stocks have come under increasing pressure.
New US tariffs and rising inflation fuel uncertainty
The price losses come at a particularly bad time for the financial market. Investors are concerned about the introduction of new US tariffs on April 2, announced by President Donald Trump. The so-called “Reciprocal Tariffs” are expected to affect up to 25 countries and hit the automotive, pharmaceutical, and semiconductor industries particularly hard.
According to an analysis by the investment bank Barclays, the new auto tariffs alone could increase import prices by $275 billion annually. Overall, the new tax mechanism, known as the “External Revenue Service,” is expected to generate $600 billion annually for the US economy.
These geopolitical tensions and economic policy measures are already having a noticeable impact on consumer sentiment. According to the financial media outlet The Kobeissi Letter, consumer sentiment has fallen by 20 points in recent weeks, to a reading of 57 – the lowest level outside of an official recession.
Bitcoin remains under pressure – institutional investors hesitate
Investor nervousness is evident not only in traditional financial markets, but also in Bitcoin. While many crypto enthusiasts see Bitcoin as a potential hedge against inflation, in practice, the cryptocurrency remains closely linked to stock market movements.
Particularly striking is the low trading volume on the spot market, suggesting that few buyers are currently willing to purchase Bitcoin at current levels. At the same time, data from the futures market shows that traders are acting increasingly cautiously and opening few new long positions. This suggests that many investors are expecting further price losses and are minimizing their risk.
In addition, the selling pressure is not limited to Bitcoin. Major tech stocks are also under massive pressure. The so-called “Magnificent 7” – including companies like Apple, Microsoft, and Nvidia – have lost over $3 trillion in market capitalization in recent weeks.
Where is Bitcoin headed now?
The coming weeks are likely to be crucial for Bitcoin and the entire financial market. If uncertainty in the stock markets persists and inflation continues to rise, Bitcoin could come under further pressure and possibly slide into the $75,000–$78,000 range.
The long-term outlook, however, remains unchanged: Structural demand for Bitcoin, especially from institutional investors, appears unbroken. Should the market stabilize and investor confidence return, Bitcoin could recover faster than many currently expect.
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