As global markets spiral into chaos following President Trump’s aggressive tariff blitz, crypto investors are discovering the hard way that Bitcoin isn’t as independent as advertised. The so-called “digital gold” has plunged nearly $25,000 in a week, falling from nearly $100K in January to as low as $74,000 over the weekend. As of Monday night, it’s barely holding above $78,800.
“If Bitcoin were the decentralized hedge people claimed it was, Trump’s idiot tariffs should’ve made it stronger — not weaker,” wrote The Verge’s Elizabeth Lopatto, calling out the myth of crypto immunity.
Instead, crypto appears to be trading exactly like every other risk asset.
From Safe Haven to Risk Exit
Bitcoin’s original promise was a libertarian dream — a decentralized currency outside government control. But in 2025, it’s clear that reality looks very different. With ETF exposure, institutional adoption, and retail speculation at all-time highs, Bitcoin has essentially become a Wall Street product. And when things get ugly, Wall Street sells.
“The casuals are bailing,” Lopatto wrote. “They need their fun money — in real currency now.”
Data from Coinbase and Binance shows retail withdrawals are surging, with many users selling into stablecoins or even back into fiat as inflation and uncertainty grip the market.
And the bleeding isn’t limited to Bitcoin. Ethereum dropped below $3,000, Solana slid under $130, and the total crypto market cap fell below $2 trillion for the first time since 2023.
Not Gold, Not Cash — Just Numbers
For years, Bitcoin’s fans touted it as a hedge against fiat collapse — a modern digital fortress. But this latest collapse reinforces a different reality: Bitcoin follows liquidity, not ideology.
In fact, Lopatto highlights that Bitcoin’s performance proves it’s “valuable because dollars are valuable.” As soon as credit tightens and sentiment flips, the riskiest assets are the first to go. And crypto — especially post-ETF Bitcoin — is now squarely in that bucket.
“They just liked Number Go Up,” she wrote. “Well, now Number is Going Down.”
What’s Next?
With Fed cuts now off the table, a potential recession looming, and global markets in freefall, crypto bulls face their first real test since the 2022 bear market. And this time, there’s no easy narrative to cling to — no halving cycle, no easy monetary policy, and no safe exit route.
Bitcoin may still have long-term promise, but right now, it’s clear: it’s just another casualty in a very real, very painful global financial storm.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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