Bitcoin Drops Below $79K as Market Fears Spark 'Black Monday' Fears

Bitcoin (BTC) briefly showed signs of “decoupling” from traditional markets last week, with some labeling it a potential “safe haven” asset amid global economic uncertainty. However, that narrative may have been premature as crypto markets plunged alongside traditional assets over the weekend.

Amid fears of an escalating trade war sparked by President Trump’s sweeping tariffs on U.S. trading partners, investors retreated from risk assets. With U.S. stock markets closed for the weekend, many turned to the 24/7 crypto market to express bearish sentiment. By late Sunday, Bitcoin dropped 5% over 24 hours to just above $79,000, hitting lows of $78,400 as Nasdaq 100 and S&P 500 futures opened with steep declines of 5% and 4.5%, respectively.

Other major cryptocurrencies were hit even harder. Ethereum (ETH) fell 11% to $1,590, while Solana (SOL) dropped 10% to $107. The market chaos has led “Black Monday” to trend on X, recalling the historic October 1987 crash where the Dow plummeted nearly 25% in one session.

Investor panic was further fueled by billionaire hedge fund manager Bill Ackman, who warned on social media of an “economic nuclear winter” if the U.S. continues to escalate trade conflicts. Ackman urged the President to pause and reevaluate the tariff strategy to avoid long-term global fallout.

Meanwhile, safe-haven demand appeared to benefit U.S. Treasuries, with the 10-year yield falling 14 basis points to 3.85%. While Bitcoin initially resisted the broader sell-off, the latest decline raises fresh questions about its role as a hedge in times of global economic stress. Investors now wait to see if the week ahead brings stability or deeper market turmoil.