Bitcoin lost 7.6% its value over the last day to sell at $79,390. The latest price drop represents the bottom point of the year and strengthens the negative trends that worry crypto traders.

Bitcoin lost more ground today as it reached $79,250 because investors remained cautious throughout the market. Ether follows a similar trend as it stays close to $2,100 but suffers a major 10% loss.

Bitcoin recently faced a market slump due to the global economic worries as Augustine Fan, Head of Insights at SignalPlus explained. Nvidia delivered good results but investors turned bearish because multiple strains like economic slowdown, tariffs, and financial market overextension developed at the same time.

Bitcoin’s Correlation with S&P 500 Fuels Decline

On Thursday President Trump announced plans to continue the March 4 tariffs between the United States and its trading partners Canada and Mexico leading to a major market fall.

The President added that new import tariffs against China would double to 20% from 10%. Wariness about increasing trade risks makes investors take fewer risks which spreads from traditional financial markets into crypto marketplace behavior.

Bitcoin lost value due to crypto research firm Presto Research finding that big institutions had to sell their basis trade holdings. When financial institutions reduce their risk exposure by selling Bitcoin exchange-traded funds (ETFs) through U.S. trading platforms this market downturn receives further exacerbation.

Bitcoin Drops Below $80K Amid Economic and Trade Fears

The strong connection between Bitcoin and the S&P 500 index makes it react directly to overall financial market trends according to Fan. He explained that weak trading mood existed from January as numerous speculative runs washed away market funds.

According to Fan “option speculators with bullish positions are reducing their bets because they use their puts to replace the calls they sold.” According to CME Group analytics Bitcoin options trade lost 5% value in just one day and ended at $79,190.

Bitcoin futures options trading volume on Thursday decreased 50% compared to previous day”s trading as market participants rushed to exit their leveraged positions.

The market reacts negatively to concerns about the way Bitcoin acquisition strategies work for Michael Saylor. The MicroStrategy co-founder has buy multiple bitcoins using securities he converts into cash.

Analysts view MicroStrategy”s Bitcoin strategy as an impressive company move that makes markets unpredictable especially during market lows. According to Fan the market sentiment seems set for a downturn because MicroStrategy continues to buy bitcoins aggressively.