TLDR
- Bitcoin dropped to nearly $75,000 as Trump’s global tariffs went into effect
- Ethereum experienced a steep 10% decline, leading losses among major cryptocurrencies
- Market liquidations reached $411 million in 24 hours amid the selloff
- Analysts suggest Bitcoin could drop to $70,000 if trade tensions escalate
- Some crypto executives believe Bitcoin may outlast the US dollar as trust in fiat currencies wanes
Bitcoin and other major cryptocurrencies experienced sharp declines as President Donald Trump’s sweeping global tariffs took effect this week. The market reaction mirrors broader financial turmoil, with both traditional and crypto markets showing heavy losses amid escalating trade tensions.
Bitcoin dipped to nearly $75,000 early Wednesday before slightly recovering, while Ethereum dropped 10%, leading losses among major tokens. The cryptocurrency market has lost about $1.2 trillion in value since early February, with Bitcoin now down roughly 30% from its January peak above $109,000.
The selloff coincides with Trump’s executive order establishing a 10% baseline tariff on all imports from all countries, which took effect on April 5. Harsher reciprocal tariffs on trading partners with which the US has the largest trade deficits kicked in on April 9, with Chinese goods facing tariffs as high as 104%.
Smaller tokens showed even deeper losses, with Berachain’s BERA down 20% and popular memecoins like BONK, PEPE, and FLOKI down more than 9%. Dogecoin dropped 16.3% while Solana and Cardano fell 18% and 23.7% over the past week, according to CoinGecko data.
“It’s been a miserable run for investors since the start of February,” said Pav Hundal, lead market analyst at Swyftx. “The markets need a circuit breaker on sentiment as much as anything else.”
Market Impact and Economic Concerns
The crypto market’s decline mirrors broader financial market turmoil. Asian markets opened sharply lower on Wednesday, with Japan’s Nikkei 225 falling 2.6% by midday, and Australia’s ASX 200 losing 2%.
US treasuries extended their selloff, with 30-year yields soaring more than 20 basis points to 4.98%. Jim Bianco, founder of Bianco Research, noted that the last time this yield rose this much in three days was January 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
“This kind of historic move is caused by a forced liquidation, not human managers make decisions about the outlook for rates at midnight ET,” Bianco said in an X post.
The 10-year Treasury yield jumped between 4.2% and 4.4% late Tuesday, representing one of its fastest intraday climbs since World War II. The first Treasury auction of three-year notes following Trump’s tariff announcement saw the weakest demand since late 2023, raising concerns about waning foreign investors’ appetite for US government debt.
Rising yields mean bond prices are falling and increase the cost of borrowing for the US government, which could worsen the federal deficit. Investors worry that a prolonged trade war could weaken global trade, disrupt supply chains, and slow US economic growth.
Long-Term Outlook for Bitcoin
Some traders are eyeing a Bitcoin drop to as low as $70,000 in the near term if trade tensions continue to escalate.
“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,”
Ryan Lee, Chief Analyst at Bitget Research, told CoinDesk.
Lee suggested that dollar-cost averaging into Bitcoin is a prudent move now, with an eye on altcoins like Solana for higher-risk upside later. He remained optimistic for recovery if the situation improves in the coming months.
“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 as a Dollar Alternative?
The market turmoil has reignited discussions about Bitcoin potentially outlasting the US dollar in the long term.
“Higher chance Bitcoin survives over the dollar in our lifetime after today,” Bitwise Invest head of alpha strategies Jeff Parks said in an April 9 X post. “First time the thought hit me and didn’t feel like theory but an actual truth to grapple with.”
higher chance bitcoin survives over the dollar in our lifetime after today
first time the thought hit me and didn’t feel like theory but an actual truth to grapple with
— Jeff Park (@dgt10011) April 9, 2025
Bitwise CEO Hunter Horsley shared a similar view, noting that with trust in the US dollar waning and other foreign currencies seen as “even weaker,” investors are left with fewer choices.
Bitcoin author Saifedean Ammous suggested that America’s issue isn’t with one specific country’s deficit but with aggregate deficits worldwide due to having a “fiat money printer.” He argued that the real solution is to stop printing “fake money” and move to a hard store of value like Bitcoin or gold.
The US Dollar Index, which tracks its strength against a basket of major currencies, is trading at 102.193, down 5.84% since January 1, according to TradingView data.
Liquidation data shows market distress, with total liquidations running to approximately $411 million over the last 24 hours.
“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 said. “
All eyes now will be on how quickly the US can barter new trade and non-trade deals.”
