TLDR
- Bitcoin dropped to nearly $75,000 as Trump’s sweeping global tariffs took effect, with Ethereum falling 10%
- Total crypto market capitalization decreased 6%, extending a 7-day slide to nearly 15%
- U.S. treasury yields soared, with 30-year yields rising over 20 basis points to 4.98%
- Over $411 million in crypto liquidations occurred in the past 24 hours
- Analysts suggest caution short-term but see potential Bitcoin recovery to $95,000-$100,000 by late 2025 if conditions improve
Bitcoin dropped to nearly $75,000 early Wednesday as President Donald Trump’s sweeping global tariffs went into effect, triggering a broad selloff across cryptocurrency markets. Ethereum suffered even steeper losses, falling 10% and trading at its lowest point since March 2023.
The overall crypto market capitalization decreased by 6%, extending a 7-day slide to nearly 15%. This downturn mirrors the broader financial market turmoil caused by escalating trade tensions between the United States and China.
Trump’s tariff policy includes a 104% hike on Chinese goods, along with import taxes on over 60 trading partners. These measures, which took effect just after midnight Tuesday, have intensified what many observers call a “trade war” between the world’s two largest economies.
Market Reaction and Liquidations
Smaller tokens showed deeper losses than major cryptocurrencies, with trendy upstart Berachain’s BERA down 20%. Popular memecoins also took a hit, with Bonk, Pepe, and Floki down more than 9%.
Liquidation data shows the extent of market distress, with total liquidations reaching approximately $411 million over the past 24 hours. This reflects the panic selling that often accompanies sharp market downturns.
“It’s been a miserable run for investors since the start of February, with more than $1.2 trillion in value wiped from the crypto market,” said Pav Hundal, lead market analyst at Swyftx. “The markets need a circuit breaker on sentiment as much as anything else.”
Major altcoins posted heavy losses as well. Dogecoin dropped 16.3% on the day, while Solana and Cardano fell 18% and 23.7% respectively over the past week, according to CoinGecko data.
Broader Economic Concerns
The crypto market’s selloff coincides with turmoil in traditional financial markets. Asian markets opened sharply lower on Wednesday, with Japan’s Nikkei 225 falling 2.6% by midday. This follows a 1.5% decline in the S&P 500 on Tuesday, bringing its losses since mid-February to nearly 20%.
U.S. treasuries extended their selloff, with 30-year yields soaring more than 20 basis points to 4.98%. This represents a concerning reversal from the usual safe haven status that bond investors typically enjoy during periods of market stress.
“Since Friday’s close to now the 30-year yield is up 56 bps, in three trading days,” noted Jim Bianco, founder of Bianco Research. “The last time this yield rose this much in 3 days was January 7, 1982, when the yield was 14%.”
Something has broken tonight in the bond market. We are seeing a disorderly liquidation.
If I had to GUESS, the basis trade is in full unwind.
Since Friday's close to now … the 30-year yield is up 56 bps, in three trading days.
The last time this yield rose this much in 3… pic.twitter.com/IS6qog4uog
— Jim Bianco (@biancoresearch) April 9, 2025
The 10-year Treasury yield jumped between 4.2% and 4.4% late Tuesday, one of its fastest intraday climbs since World War II. The first Treasury auction of three-year notes following Trump’s tariff announcements witnessed the weakest demand since late 2023.
These bond market movements suggest waning foreign investor appetite for U.S. government debt as trade tensions escalate.
Analyst Outlook
Some traders are eyeing a potential Bitcoin drop to as low as $70,000 in the near term if trade tensions continue to escalate. However, many see the current dip as a potential buying opportunity for long-term investors.
“For investors, the short-term outlook calls for caution, while a further drop to $70,000–$75,000 for Bitcoin is possible if trade tensions escalate, yet this dip presents a buying opportunity for the long haul,” said Ryan Lee, Chief Analyst at Bitget Research.
Lee recommends dollar-cost averaging into Bitcoin now, while keeping an eye on altcoins like Solana for higher-risk upside later. Despite current pressures, he remains optimistic about a potential recovery.
“If macro conditions stabilize or pro-crypto policies emerge, we could see Bitcoin hit $95,000–$100,000 by late 2025, lifting the market cap past $3 trillion again,” Lee added.
Bitcoin has fallen roughly 30% from its January peak above $109,000, which occurred just before Trump’s inauguration. Despite this decline, Bitcoin’s dominance in the crypto market has risen to near 60%, suggesting relative strength compared to altcoins.
“We’ve entered a new era of protectionism, and what’s worrying is we still have no more clarity on where it’s all going to settle,” Hundal explained. “All eyes now will be on how quickly the U.S. can barter new trade and non-trade deals.”
The current market environment presents challenges for crypto investors, who must navigate the uncertain impact of trade policies on digital assets. Many analysts suggest focusing on the fundamentals that have supported Bitcoin’s long-term growth, including institutional adoption and the effects of the recent halving cycle.
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