Bitcoin Plunges Below $75,000 As Tariff Anxiety Creates Fresh 2025 Low
April 7, 2025
Bitcoin prices extended their recent losses in the last few days, falling to their lowest point of the year as global investors responded to the latest concerns created by ongoing developments surrounding global tariffs.
The world’s most prominent digital currency declined to roughly $74,400 this morning, according to Coinbase figures from TradingView.
At this point, the cryptocurrency was trading at its most depressed value since November and had shed more than 30% of its value since reaching an all-time high of more than $108,000 in January, additional Coinbase data reveals.
When explaining these latest declines, analysts frequently pointed to concerns surrounding global tariffs, a matter that has generated significant news coverage over the last several weeks.
Asked about whether these developments were impacting bitcoin prices, Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, answered in the affirmative, stating via email that “Yes, the recent drop in Bitcoin appears to be largely driven by a broader risk-off sentiment sparked by renewed tariff concerns.”
“As seen in past market cycles, Bitcoin tends to behave more like a risk asset than a safe haven, often mirroring movements in tech stocks and other growth-oriented investments,” he added.
“The fear of escalating trade tensions—particularly between major economies like the U.S. and China—can prompt investors to shift away from volatile assets like crypto and toward more stable options. This macro uncertainty, combined with profit-taking after Bitcoin’s sharp run-up earlier this year, likely contributed to the sharp sell-off,” said DiPasquale.
Alex Lin, cofounder and general partner at venture capital firm Reforge, offered a similar take on the matter, replying through email that “Yeah, heightened economic uncertainty tied to US tariff policies is the obvious, most prominent factor to Bitcoin’s decline. The entire market across multiple asset types is reacting accordingly.”
However, the TikTok influencer who goes by Wendy O provided a more complicated explanation, pointing to several factors that may have contributed to bitcoin’s latest depreciation.
She highlighted the outflows that bitcoin exchange-traded funds (ETFs) have been experiencing lately, stating via email that “Bitcoin Spot ETF buyers have been making profits and we can see this by the outflow data. Bloomberg suggests we have seen $5.5 billion in outflows since 1/1/2025.”
Wendy O also noted how investor interest in gold might be impacting bitcoin, stating that many market participants have been harnessing the precious metal as a hedge against economic and political uncertainty.
The commodity’s price has been rising to fresh highs lately, with spot gold contracts reaching a record of more than $3,100 earlier this month, according to Kitco News data.
She also provided some technical analysis for bitcoin.
“Chart wise on the BTC weekly Bitcoin has strong support at $71,000 from April and March of 2024 and there could be another drop as BlackRock’s Larry Fink said there could be a possible additional 20% market drop. $82,000 would need to be reclaimed for a bullish Bitcoin scenario.”
The chart below depicts these price levels:
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