Bitcoin fell on Tuesday, briefly hitting a fresh four-month low as investor risk appetite was eroded by mounting concerns over a potential U.S. recession and the uncertainty surrounding further trade tariffs under President Donald Trump. Broader crypto markets also declined, as Trump’s recent announcement of a national crypto stockpile failed to generate enthusiasm. A White House crypto summit held last week offered few clear signals regarding his plans for crypto regulation.
After three consecutive weeks of steep losses, Bitcoin continued to face downward pressure. The digital asset took little support from an announcement of a fresh capital raise by Strategy—the world’s largest corporate Bitcoin holder—to buy more crypto. By 01:50 ET (05:50 GMT), Bitcoin had dropped 2.4% to $80,289.1, after falling as low as $76,677.1 earlier in the session.
Bitcoin’s decline tracked steep losses in global stock markets amid growing fears that a U.S. recession could be on the horizon. Risk-driven assets, particularly cryptocurrencies, tend to react strongly to such economic headwinds. Concerns over the potential imposition of additional tariffs also weighed heavily. Trump lashed out against Canada for its retaliatory measures over his 25% tariffs and reiterated his plans for imposing reciprocal tariffs as early as April, further heightening uncertainty.
In a recent interview, Trump declined to rule out the possibility of a U.S. recession, instead warning of potential economic turbulence as his administration implements its reforms. This caution has contributed to a sustained decline in crypto markets throughout 2025, with investors remaining wary of the highly speculative nature of these assets in an environment of economic uncertainty.