Bitcoin and US stock markets experienced substantial losses, with the S&P 500 plummeting 4.2% in its most significant decline since June 2020, wiping out a total of $1.6 trillion in market value. The Dow Jones Industrial Average fell to 40,785.41, and the Nasdaq Composite dropped by 5.23%. Bitcoin's value decreased by 8%, although bulls have defended the crucial $80,000 support level. This downturn is attributed to uncertainties from newly announced tariffs by US President Donald Trump, raising concerns about a potential recession. Over the preceding 24 hours, the crypto market saw $573 million in liquidations, leading to a drop in Bitcoin's open interest to below $50 billion. Analyst Joao Wedson warned that heavy leverage around the $80,000 level could result in Bitcoin's price dropping to $64K-$65K if it breaks this support with high trading volume. Traders are questioning whether an oversold bounce can be expected, given the current market conditions.

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