Bitcoin Drops to $82,045 Amid Trade Tariffs and Recession Fears

Bitcoin dropped to a near two-week low on Monday, continuing its recent slide as concerns over increased trade tariffs under U.S. President Donald Trump dampened demand for risk assets. Bitcoin fell 1% to $82,045.2, briefly hitting $81,300, as traders reacted to signs of a looming U.S. recession, especially after Goldman Sachs raised the likelihood of an economic slowdown in 2025.

The crypto market was also impacted by the transfer of 4,000 Bitcoins, valued at approximately $332 million, to the Kraken exchange, signaling potential sales. This move compounded the negative sentiment surrounding Bitcoin and other cryptocurrencies, as it coincided with growing uncertainty over Trump's proposed tariffs. Reports indicated Trump is considering imposing new tariffs on up to 25 countries, potentially destabilizing global trade and leading to retaliation from major economies.

These trade tensions, combined with concerns about the U.S. economy, have increased market risk aversion. Speculative assets like Bitcoin often struggle during times of economic instability. Following Trump’s inauguration, Bitcoin lost nearly 40% from its record highs.

In addition to tariff fears, Goldman Sachs warned that the likelihood of a U.S. recession has risen to 35%, citing inflation concerns and weak consumer sentiment. The broader crypto market also struggled, with Ether down 1.5% at $1,809.93 and XRP falling 3.5% to $2.1022. Other altcoins, including Solana, Cardano, and meme tokens like Dogecoin, also saw losses, with the latter dropping 2.7%.

As Bitcoin and other cryptos continue to face downward pressure, investors remain cautious amidst heightened economic uncertainty.