Bitcoin falls to $83K as fear index hits lowest since 2022

Bitcoin (CRYPTO:BTC) fell to a new yearly low on Thursday, dropping 5% to $80,100 as risk aversion weighed on financial markets.  

According to CoinGecko, this marks Bitcoin’s lowest price since the beginning of 2025.  

Ethereum (CRYPTO:ETH) also declined, falling 8% to $2,150, its lowest level in over 14 months.  

Market liquidations exceeded $220 million within an hour, with Bitcoin long positions accounting for nearly half of the total, based on CoinGlass data.  

The broader crypto market downturn coincided with renewed economic uncertainty and a sell-off in technology stocks.  

The S&P 500 closed 1.6% lower, the Dow Jones Industrial Average slipped 0.4%, and the Nasdaq Composite dropped 2.8%, led by losses in Nvidia.  

Investor sentiment has weakened amid concerns that former President Donald Trump may impose new tariffs on imports from the EU, Mexico, and Canada.  

According to market analysts, these trade measures could increase inflation, adding further pressure on financial markets.  

Although Thursday’s liquidations were significantly lower than the $600 million recorded earlier in the week, the shift reflects a decline in sentiment that was previously lifted by Trump’s inauguration.  

Economists remain divided on the potential impact of Trump’s proposed tariffs.  

Some warn that higher import taxes could raise consumer prices, while others argue they could strengthen domestic industry.  

Bitcoin and Ethereum’s decline follows a broader trend of investors reducing exposure to risk assets amid uncertainty over trade policies and inflation.  

If market sentiment remains weak, further downside pressure on cryptocurrencies may persist.

At the time of reporting, the Bitcoin price was $80,981.44.