Bitcoin Drops Below $80,000 as Risk of $1 Trillion Trade Crash Looms

Bitcoin’s price has fallen below $80,000 amidst a turbulent macroeconomic climate. Analysts warn that the potential collapse of a $1 trillion Treasury basis trade strategy could trigger a significant liquidity crisis, echoing the 2020 COVID crash which saw Bitcoin plummet nearly 40%. This decline comes after recent market volatility, triggered by escalating tariffs from President Trump and retaliatory actions from China. While Bitcoin maintained strength in the past weeks, this latest drop reveals its vulnerability to wider market fluctuations.