## Bitcoin Price Takes a Dive Amid Economic Concerns
The price of Bitcoin plummeted to as low as $77,494 on Monday, marking a significant 5.6% drop as financial markets reacted to rising worries about inflation and a potential recession in the United States. These concerns were ignited by comments made by President Trump over the weekend. When asked on Sunday if he anticipates a recession this year, Trump did not dismiss the possibility. “I hate to predict things like that,” he remarked, adding that the economy would undergo a “transition” phase as it adjusts to his substantial tariffs on China, Canada, and Mexico. His actions regarding these tariffs, including various delays and adjustments, have unsettled markets in recent weeks.
As of this writing, Bitcoin has slightly recovered to $79,290. However, it remains down 14.2% over the past week, trading at levels not seen since before the U.S. elections in November. The impact of the tariffs, along with the aftermath of the much-anticipated White House Crypto Summit, has contributed to this sharp decline. This situation has pushed the widely followed crypto fear and greed index, which gauges trader sentiment, to a multi-year low of 17, indicating ‘extreme fear’—the lowest level since mid-2023.
Meanwhile, Ethereum’s ether (ETH) has also taken a hit, dipping below the $2,000 mark and reaching its lowest price since November 2023, down approximately 8.2% in the last 24 hours.
## Is The DOJ Dumping BTC?
In an interesting twist, David Bailey, a well-known Bitcoin advocate and CEO of BTC Inc., has suggested that Bitcoin’s recent price drop may be connected to liquidation activities by the U.S. Department of Justice (DOJ). “If the DOJ has been liquidating America’s Bitcoin with haste (in defiance of the President) ever since getting court approval to do so three months ago… then Bitcoin’s price action makes perfect sense,” Bailey, who attended the White House Crypto Summit, noted in a March 10 post on X. He further indicated that more clarity on this issue could emerge in the coming days.
This speculation follows President Trump’s executive order aimed at establishing a strategic Bitcoin reserve using seized assets. As traders navigate the upcoming months, they find themselves in a wait-and-see mode, closely monitoring macroeconomic data and decisions for cues on how to position themselves in this volatile market.
