Crypto markets have dropped by approximately 4% recently, with total capitalization hitting a three-week low of $2.74 trillion. Around $150 billion exited spot markets, and nearly 170,000 traders faced liquidations totaling over $500 million, according to CoinGlass. Bitcoin prices fell over 6%, declining from an intraday high of $87,790 to bottom out at $82,277 during early trading in Asia on Thursday morning. However, it rebounded to $83,400, remaining within its range-bound channel at the time of writing.
In other news, the market downturn follows an announcement by US President Donald Trump on April 2, confirming trade tariffs affecting numerous countries worldwide. Trump introduced tariffs on 185 countries simultaneously, marking one of the largest tariff impositions in US history. As a consequence, S&P 500 futures lost approximately $2 trillion in market value within just 15 minutes, reported the Kobeissi Letter. Economists warned that this new reciprocal tariff plan could be a “tsunami” with unpredictable repercussions for the global economy.
Trump imposed a 10% tariff on all countries starting April 5, with some nations facing even higher rates: China at 34%, Vietnam 46%, the European Union 20%, and Japan 24%. He described the announcement as “Liberation Day,” emphasizing the necessity of these new taxes to eliminate a trade deficit between the US and other countries. Imports will be subject to both the universal 10% tariff and additional specific reciprocal import levies for each nation. Trump stated, “Reciprocal. That means they do it to us, and we do it to them.”
On the altcoin front, many are re-entering bear market territory, suffering more than Bitcoin. Ethereum briefly dipped below $1,800, XRP fell to $2, Binance Coin dropped below $600, and Solana slipped under $120. Analysts noted that significant corrections are common during bull markets, and the current trend shouldn’t immediately be labeled a bear market just because Bitcoin has been down for a couple of months.
Twitter Highlights:
– Trump is set to sign reciprocal tariffs into effect. The executive order is imminent—Liberation Day has arrived!
– “It’s a new #BTC Bear Market because Bitcoin has been in a downtrend for over two months” Bitcoin experienced a -32% downtrend from mid-March 2024 to early September 2024, lasting almost 6 months before reaching new All Time Highs. #Crypto #Bitcoin
