Bitcoin faced a significant decline, falling towards $80,000 and printing a ‘death cross’ as major US stock indices mirrored the downturn experienced during the COVID-19 pandemic. The asset's early gains evaporated following the announcement of reciprocal trade tariffs by the US government. Bitcoin dropped below $82,000 for the first time since early April, following a peak of $88,580. Concurrently, the S&P 500 saw steep declines, losing over 4% in a day, marking its largest daily drop since the pandemic's peak. Jobless claims data revealed slightly better than expected figures, but a stronger labor market typically leads to tighter financial conditions, heightening recession fears. Analysts suggest a bearish trend for Bitcoin could persist for several months, coinciding with an increase in short positions across crypto markets. An onchain analytic tool pointed to a 'death cross' in Bitcoin's price trends, historically indicating a period of bearish performance lasting 3–6 months. This downturn has led to intensified uncertainty in the crypto market.

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