TLDR
- Bitcoin dropped to $74,589.67 amid US-China trade tensions with the US imposing a 104% tariff on Chinese imports
- Asian markets suffered heavy losses with Japan’s Nikkei 225 dropping nearly 4%
- Michael Saylor’s Strategy reported a $5.91 billion unrealized loss on its Bitcoin holdings
- Bitcoin formed a “death cross” technical pattern, considered a bearish indicator
- Crypto markets broadly declined as risk appetite diminished globally
Bitcoin has tumbled below the $75,000 mark as global markets reacted strongly to escalating trade tensions between the United States and China. The cryptocurrency fell to a low of $74,589.67 in the past 24 hours, wiping out recent gains and approaching six-month lows.
The sharp decline comes as President Donald Trump’s new tariffs took effect Wednesday. These include a 104% levy on Chinese imports, which has sparked fears of a global trade war and sent markets tumbling worldwide.
Asian markets were hit particularly hard. Japan’s Nikkei 225 dropped nearly 4% at opening, with markets in South Korea, Australia, and New Zealand following with heavy losses.
Global Market Reaction
In the United States, major stock indices reversed recent gains. The S&P 500 fell 1.6% after having gained 4.1% earlier, pushing it nearly 19% below its February highs.
The Dow Jones Industrial Average dropped 0.8%. The tech-heavy Nasdaq experienced an even steeper decline of 2.1%.
These market movements reflect growing investor unease as trade negotiations between the US and China continue to stall. The tariffs took effect from midnight Eastern Standard Time on Wednesday.
China has vowed retaliation against the United States. Several European countries are reportedly preparing countermeasures, raising concerns about an escalating global trade conflict.
Crypto Market Impact
The cryptocurrency market has not been immune to these broader economic tensions. Bitcoin’s decline triggered a wave of liquidations, with nearly $400 million worth of leveraged long positions wiped out in a single day.
For the first time in weeks, Bitcoin’s long-short ratio has flipped. Short positions now make up 55% of all open interest, indicating that traders are increasingly bearish on the cryptocurrency’s near-term prospects.
Other cryptocurrencies fell in tandem with Bitcoin. Ethereum dropped 7.4% to a two-year low of $1,459.95.
XRP fell 3.2% to $1.8014, approaching a five-month low. Solana, Cardano, and Polygon experienced declines between 2% and 3%.
Even meme tokens felt the pressure. Dogecoin dropped 3.5%, while $TRUMP fell 3.1% and remained near record lows.
Strategy’s Bitcoin Losses
Adding to Bitcoin’s woes, Michael Saylor’s Strategy, the largest listed holder of Bitcoin, reported a $5.91 billion unrealized loss on its digital asset holdings for the quarter ending March 31, 2025.
This loss is expected to result in Strategy reporting a net loss for the first quarter of 2025. The company noted that the loss comes as a result of changes in its accounting standards.
These new standards now require that any changes in the fair value of digital assets be recognized in financial statements. Strategy’s shares fell sharply following this disclosure.
The company also informed shareholders that it had not sold any stock. It also had not acquired any additional Bitcoin since the end of Q1, despite the price drops potentially offering buying opportunities.
Technical indicators have turned bearish for Bitcoin as well. The cryptocurrency recently formed what traders call a “death cross” – a technical pattern where the 50-day moving average crosses below the 200-day moving average.
This pattern is widely regarded as a bearish signal. It suggests that Bitcoin could face further downward pressure in the coming weeks.
The recent price gains in traditional safe-haven assets such as gold and the Japanese yen have challenged the notion that Bitcoin functions as an effective hedge against market uncertainty.
As trade tensions continue to rise and market uncertainty grows, both traditional and crypto investors remain cautious. The decline in Bitcoin’s price reflects the broader market sentiment: nervous, fearful, and uncertain about what the future holds.
With Trump’s tariffs now in effect and global retaliation expected, markets may continue to experience volatility in the near term. For Bitcoin and other cryptocurrencies, this could mean continued pressure on prices as investors seek safer assets during this period of global economic tension.
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