Crypto Market Crash: China Tariffs Trigger BTC & ETH Freefall!

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Why Crypto Market Is Crashing Today: China Tariff War Sends <a href="https://pricpr.com/btc-usd/">BTC</a> & <a href="https://pricpr.com/eth-usd/">ETH</a> Into Freefall

As a crypto investor, I woke up Wednesday with a sense of unease in the air, as major Asian stock indexes reacted to the U.S.’s proposed 104% tariff against China. By the end of the Eastern trading session, the Asia Dow, Nikkei 225, and Hang Seng had all dipped approximately 2%. This news cast a shadow over the financial markets, making me cautious about my crypto investments as well.

As China is expected to seize control of the market situation, investors are preparing for a possible economic downturn. Additionally, economists on Wall Street predict an increase in prices (inflation) due to ongoing tariffs, which will likely impact struggling households in the short term.

Crypto Market Falls in Tandem 

Amid significant drops in leading stock markets worldwide, even the cryptocurrency sector has experienced selling pressure due to widespread panic. At the moment of writing, data from Coinmarketcap (which is supported by Binance) shows a decrease of approximately 5.8% in the total market capitalization of cryptocurrencies, leaving it at around $2.38 trillion.

As I delve into today’s cryptocurrency market analysis, I observed a notable dip in Bitcoin‘s (BTC) value. Over the past 24 hours, it has descended by almost 6 percent, trading around the $75,359 mark at present. On the other hand, Ethereum (ETH) experienced a more significant decline, dropping over 10 percent in the same period. It plunged to a daily low of approximately $1,386 before showing signs of recovery, currently hovering around $1,425.

Due to increased market volatility, approximately $404 million was lost in the cryptocurrency markets that use leverage, and it’s worth noting that around $304 million of this loss came from long-term traders.

What Next?

In simpler terms, there’s been a downward trend in the broader crypto market due to reduced interest from major investors, often referred to as “whales.” As an example, U.S. Bitcoin ETFs have seen a significant withdrawal of approximately $327 million, primarily driven by BlackRock’s IBIT fund.

According to past observations by Coinpedia, it seems the crypto market may continue experiencing bearish trends due to ongoing tariff disputes. Looking at technical analysis, Bitcoin’s value could potentially decrease by approximately $10k over the next few days and settle within a support range of around $63k – $67k. This area is significant because it lines up with Strategy’s average price for amassing Bitcoin reserves.

As the broader altcoin market, particularly Ethereum (ETH), follows Bitcoin’s price trends, it seems that further struggles or hardships are on the horizon.

Despite the current situation, data analyzed on-chain by Santiment suggests that long-term investors might find it beneficial to start buying altcoins now. This conclusion is supported by the MVRV mid-term opportunity and danger zone divergence indicator.

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FAQs

1. Regarding altcoins, current market conditions might present opportunities for long-term investors according to Santiment’s analysis of mid-term MVRV indicators.

2. US tariffs on China can have a negative impact on the stock market by causing market uncertainty and subsequent selloffs due to concerns about trade wars and inflation.

3. Tariffs seem to have an adverse effect on Bitcoin’s price as well, with a significant drop being observed due to broader market anxiety and ETF withdrawals, potentially leading to further decreases.

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2025-04-09 08:46