Market Rout Deepens: Bitcoin Dips Under $79K, U.S. Futures Tank Another 5%

Bitcoin’s early-market performance on Sunday signaled mounting nervousness among investors as trade tensions escalated following President Trump’s aggressive tariff announcement.

Key Highlights:

• Bitcoin’s Decline: Bitcoin fell by more than 5% over a 24-hour period, briefly dipping to $78,400. This drop came as U.S. stock index futures indicated further losses, with the Nasdaq 100 down about 5% and the S&P 500 off 4.5%.
• Wider Crypto Sell-off: Major cryptocurrencies were hit even harder; Ethereum slid 11% to $1,590 and Solana dropped 10% to $107.
• Historic Parallels: The situation evokes memories of the 1987 “Black Monday” crash, with the term trending on social media as investors recall when market fears peaked following a global currency war scare.
• Bill Ackman’s Warning: Prominent hedge fund manager Bill Ackman warned of “economic nuclear war” on X, urging a pause to avoid a self-induced crisis that could dampen global business investment and erode America’s international standing.
• Flight to Safety: Amid this turmoil, the 10-year Treasury yield tumbled 14 basis points to 3.85%, reflecting a classic flight to safety as investors scramble for lower-risk assets.

Market Context:

Investor anxiety was triggered by President Trump’s sweeping reciprocal tariffs against nearly every major U.S. trading partner. The tariffs, which contributed to a $5.4 trillion sell-off in U.S. equities last week, have strained confidence in the market’s overall direction. While Bitcoin had been positioned as a potential safe haven amid equity market volatility, its recent slip below $79K casts doubt on its ability to serve as an effective counterbalance during such tumult.

Bill Ackman, once a moderate supporter of the current administration’s policies, has now publicly warned that unbridled tariff warfare could plunge the U.S. economy into a prolonged crisis — a scenario he likened to “economic nuclear war.” His stark commentary underscores the broader fears that global trade and investment could come to a screeching halt if the tariffs prompt a full-scale economic confrontation with key trade partners.

As markets gear up for Monday’s session, attention is focused on whether this bout of volatility is a transient reaction or the opening salvo in a deeper market correction. In the meantime, investors remain cautious, hedging their bets in anticipation of further macroeconomic shifts.

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