Double-edged sword during global market turmoil

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Bitcoin ( $80,340.00 ) and other cryptocurrencies are often praised for offering around-the-clock trading access, but that constant availability may have contributed to a steep sell-off over the weekend following the latest US trade tariff announcement.

Unlike stocks and traditional financial instruments, Bitcoin ( $80,340.00 ) (BTC) and other cryptocurrencies enable payments and trading opportunities 24/7 thanks to the accessibility of blockchain technology.

After a record-breaking $5 trillion was wiped from the S&P 500 over two days — the worst such drop on record — Bitcoin ( $80,340.00 ) remained above the $82,000 support level. But by Sunday, the asset had plummeted to under $75,000.

Sunday’s correction may have occurred to due Bitcoin ( $80,340.00 ) being the only large tradable asset over the weekend, according to Lucas Outumuro, head of research at crypto intelligence platform IntoTheBlock.

“There was a bit of optimism last week that Bitcoin ( $80,340.00 ) might be uncorrelating and fairing better than traditional stocks, but the [correction] did accelerate over the weekend,” Outumuro said during Cointelegraph’s Chainreaction live show on X, adding:

“There’s very little people can sell on a Sunday cause most markets are closed. That also enables the correlation because people are panicking and Bitcoin ( $80,340.00 ) is the largest asset they can sell over the weekend.”

Outumuro noted that Bitcoin ( $80,340.00 ) ’s weekend trading can also have upside effects, as prices often rally in calmer conditions.

Bitcoin ( $80,340.00 ) initially “decoupled” from traditional assets after the US stock market saw a $3.5 trillion drop on April 4 as US Federal Reserve Chair Jerome Powell said the Trump administration’s “reciprocal tariffs” could significantly affect the economy and lead to higher inflation.

However, Bitcoin ( $80,340.00 ) fell below $75,000 on April 6 as the panic from traditional markets spread to cryptocurrencies over escalating trade war concerns.

Most Bitcoin ( $80,340.00 ) investors are “all in” and overleveraged — Adam Back

Adding to Bitcoin ( $80,340.00 ) ’s 24/7 trading mechanics, numerous Bitcoin ( $80,340.00 ) holders are overleveraged, according to Blockstream CEO Adam Back.

Speaking during a fireside chat with Cointelegraph managing editor Gareth Jenkinson at Paris Blockchain Week 2025, Back said:

“The problem with the Bitcoin ( $80,340.00 ) market is most of the people who are into Bitcoin ( $80,340.00 ) are all in. So they’ve got no money. And worse, some of them are leveraged or overleveraged and it trades 24/7.”