BTC/USD: Bitcoin Dives Under $78,000 to Wipe All Post-Election Gains. What’s Next?

Orange coin nosedived as part of a wider (and brutal) US market selloff fueled by recession worries and rising inflation.

⚠️ Bitcoin Slumps to $78,000

• Bitcoin BTCUSD lost as much as 8% to kick off the trading week on Monday. Crypto bros followed stock bros and rushed to dump their holdings amid mounting concerns over the US economy and its future. Bitcoin hit a low not seen since November as prices dived to $78,000 a piece.
• In other words, just about where they were before Donald Trump won the election on November 5 and sparked a rally. That rally is now but a memory with all those gains gone. Instead, recession fears are in fashion.

🚨 Trump Fans Recession Fears

• In an interview that aired Sunday, Trump didn’t rule out the possibility of the US falling into a recession. There’s also a chance of soaring inflation with all the tariff drama threatening to undo what the Federal Reserve did — get prices down without knocking economic growth.
• Trump refused to back down on tariffs on America’s closest allies — Canada and Mexico are looking to start paying 25% on imports as soon as April 2. (Why not April 1, though?) And China is already paying 20% on its imports.

💪 BTC Picks Up Pace

• The fresh losses were picked up by crypto enthusiasts Tuesday morning. Bitcoin reversed some of its decline to climb above $81,000 a token. Apparently, traders figured it’s a good idea to buy the dip before US stocks opened for trading and had a chance to regroup.
• Ethereum ETHUSD, the second-largest coin, slumped as low as $1,750, languishing around levels last seen in November 2023. In other words, just about everyone who bought in 2024 was holding a losing position.