Bitcoin price drop raises crypto safe-haven doubts

After weeks of remarkable resilience, Bitcoin is showing signs of strain. The largest cryptocurrency by market cap dropped to a three-week low of $77,700 over the weekend, falling more than 6% in 24 hours as global investors grappled with escalating trade tensions and a broad sell-off in risk assets.

Ethereum followed suit, plunging nearly 12% to $1,575. Solana and Cardano also saw sharp declines, echoing widespread volatility across the digital asset landscape. As macro pressures build, the crypto market is entering a crucial phase that could help define how digital assets behave in a high-stakes, policy-driven environment.

Crypto and the new macro equation

This time, the trigger was a sweeping new round of tariffs from the U.S., spearheaded by President Donald Trump. The administration’s universal 10% import tariff- alongside steeper, country-specific rates like 34% on Chinese goods and 20% on European Union imports-has rattled global markets and renewed fears of a prolonged trade war.

Equity futures were quick to react. The S&P 500, Nasdaq, and Dow futures all fell between 4–4.6% during early Asia trading hours. 

Once CME futures opened, Bitcoin also began to slide, highlighting its increasing alignment with macro sentiment - at least in the short term.

“There was chatter that Wall Street desks were called in early ahead of CME’s open - the tension was in the air,” said Peter Chung of algorithmic trading firm Presto.

Support cracks, volatility returns

Just days earlier, Bitcoin had impressed market watchers by holding steady near $83,000 despite sharp losses in stocks and commodities. But as of Monday, BTC had dipped to $78,931 - a 5.6% drop in under 12 hours - breaking below the closely watched $80K support level.

That support wasn’t just psychological. According to Coinglass, nearly $793 million in leveraged long positions were stacked around the $81K level. Once that zone gave way, cascading liquidations may have amplified the move lower.

“Volatility is back, and with it comes opportunity,” said Pratik Kala, head of research at Apollo Crypto. “This feels like a setup for re-entry - cautiously, in small size. Traders wait for dust to settle, but those moments don’t last forever.”

From decoupling to recoupling?

Bitcoin’s earlier strength had fueled hopes of a long-awaited “decoupling” from traditional markets. When gold, silver, and equities sank, Bitcoin dipped only slightly before bouncing - suggesting it might be more defensive.

But this week’s sell-off complicates that narrative. With crypto suddenly moving in lockstep with broader markets, some wonder whether Bitcoin can truly act as a hedge - or if it’s still a high-beta asset caught in the same risk cycles as everything else.

Still, historical precedent offers some perspective. In March 2020, Bitcoin crashed alongside stocks during the initial COVID panic. However, weeks later, it began one of the strongest bull runs in its history - as institutional capital flooded into the space seeking alternatives to traditional assets.

Waiting on the next move

Much now depends on how policymakers respond. President Trump has called on the Federal Reserve to cut rates, pressuring Fed Chair Jerome Powell to act. Powell has maintained a cautious stance so far, but any sign of a dovish pivot could swiftly change the tone of global markets - and potentially crypto. The market’s response was swift: U.S. indices extended their losses, with the Nasdaq also falling 6% and into what increasingly looks like a bear market. 

“There are hints of disagreement inside the White House on the pace of tariffs,” said Chung. “If Trump walks it back or signals flexibility, that could trigger a sharp rebound in risk assets - including crypto.”

At the same time, ongoing geopolitical uncertainty is likely to keep volatility high. Investors will be watching for the European Union’s response and further guidance from U.S. monetary authorities. In this environment, Bitcoin’s behavior may offer early signals about where investor confidence is heading.

Solana under pressure

Solana continues to face challenges of its own. The $150 resistance level has proved stubborn, with the token now hovering closer to $120. A recent $200 million token unlock added more supply-side pressure, further weakening sentiment.

Despite the downturn, institutional adoption continues in the background. PayPal’s recent integration of Solana reminds us that infrastructure is still being built, even if prices aren't reflecting it yet. But with momentum stalling, traders seek stronger catalysts to revive interest.

Technical outlook: Looking ahead

Whether this marks a temporary correction or the early stages of a more profound market shift remains to be seen. Crypto’s current price action underscores its growing entanglement with global macro forces - a sign of maturity and vulnerability.

If Bitcoin stabilizes and reclaims higher levels in the coming days, it may reinforce its emerging reputation as a resilient asset during uncertainty. If not, the coming weeks could test investor conviction in new ways.

At the time of writing, BTC has fallen sharply below $80,000, and downward pressure is now dominant on the daily chart as prices remain below the moving average. However, prices are also inching below the lower Bollinger band, signaling oversold conditions, which could lead to a bounce. Should a bounce occur, key levels to watch would be $85,000 and $88,500 and on the downside, the key level to watch is $76,400.

Solana is also dipping after holding over the weekend, with a clear downward bias on the daily chart as prices remain in a sell zone. However, prices are also inching below the lower Bollinger band, signaling oversold conditions, which could lead to a bounce. Should a bounce occur, key levels are $120.00 and $136.00. On the downside, the key support level to watch will be around $99.00.

You can participate in and speculate on the price of these two cryptos with a Deriv MT5 or Deriv X account.