While Bitcoin has enjoyed months of bullish momentum, the cryptocurrency market took a sudden bearish turn on March 28, 2025. The digital currency plummeted from $88,000 to $83,300, breaking key support levels and triggering alarm bells across the crypto community. Not good.
The culprit? Trump’s new tariffs. The announcement of a 10% baseline tax on all imports and a whopping 25% tariff on foreign-made cars sent global markets into a tailspin. Bitcoin wasn’t spared, dropping 1.2% within 24 hours of the news. So much for digital gold being immune to geopolitical drama.
Technical indicators paint a grim picture. Bitcoin fell below its 200-day Exponential Moving Average—typically a sign that bulls are losing control. Traders are watching for the dreaded “death cross” formation, when the 50-day moving average dips below the 200-day. History suggests this isn’t just superstition; it often precedes extended downturns.
The charts don’t lie—Bitcoin’s breach of the 200-day EMA signals technical weakness as the dreaded death cross looms.
The ripple effects spread far and wide. Asian markets took a beating, with Japan’s Nikkei hitting eight-month lows. China might respond by devaluing the yuan, a move that could add fuel to the crypto volatility fire. It’s a domino effect nobody asked for. For traders concerned about account security during market volatility, using strong passwords is crucial to protect cryptocurrency holdings. This market reaction demonstrates how economic conditions like inflation and political tensions increasingly influence cryptocurrency values.
Trading volume for Bitcoin surged by 25% despite the price decline. People are selling, not buying the dip. Smart money? Maybe.
Options markets tell the same story. Deribit’s platform shows increased demand for put options—essentially bets that prices will fall further. The Bitcoin Fear & Greed Index reading of 44 points shows market sentiment approaching neutral territory but still leaning toward fear. The $80,000 support level is now critical. If it breaks, analysts project further dips toward $78,500.
The correlation between Bitcoin and macroeconomic events has never been clearer. Those who claimed crypto operates in its own bubble are quiet now.
As global trade tensions escalate, Bitcoin’s fate seems increasingly tied to traditional market forces. Risk-off sentiment is pushing investors toward safer havens—and clearly, Bitcoin isn’t one of them. Not today, anyway.
