Why is crypto crashing today? Over $800M Liquidated
The markets collapsed on Monday as President Trump proposed significant new tariffs. China responded promptly, imposing 34% tariffs on all U.S. imports beginning April 10. The growing tensions have investors concerned about a full-fledged trade war.
The unexpected dip comes only a day after reports suggested Bitcoin was breaking free from the S&P 500 and acting more like a haven asset. Bitcoin has plunged more than 10% to below $78,000 after President Donald Trump announced sweeping worldwide taxes. This is despite his pro-crypto position, which includes supporting regulators and promoting digital assets. However, economic uncertainty is eroding investor confidence, and many are reconsidering their holdings as tariffs begin to weigh hard on the cryptocurrency market.
Bitcoin, Ethereum, Solana, and Dogecoin are all down 6-12% today in a big market massacre. With over $900 million in liquidations, commentators are questioning Bitcoin’s status as “digital gold” and a haven asset.
BTC Down Over 6%
Bitcoin has fallen 6.9% in the last 24 hours, staying below the crucial support level of $77,500. According to Coinglass, trading volume has increased by 220% to $44 billion, while 24-hour liquidations for Bitcoin have reached $322 million. With $77,500 serving as critical support on the charts, analysts warn that if BTC falls below this level, a larger drop may follow.
Altcoins Hit Hard, ETH Crashes 13%!
Altcoins are taking a significant knock. Ethereum (ETH) has dropped 13.5% to $1,550, down more than 53% this year. Investors fear it will fall to $1,100-$1,300, although whale activity suggests some are buying the dip.
XRP is down 14.5%, below $2, and might fall to $0.65. Solana is down 14% to $102, while Dogecoin is down 16% to $0.143, as the altcoin market suffers significant losses.
Is the Bull Run Over?
CryptoQuant CEO Ki Young Ju recently stated in an X post that the bull run is likely finished, using on-chain evidence. He cites growing realized cap and flat market cap as evidence that bears are in power. Ju feels that this slump may endure up to six months, dampening prospects for a speedy comeback.
Despite price volatility, many long-term investors remain confident. Bitwise CEO Hunter Horsley stated that as global confidence erodes and cross-border transactions become more difficult, Bitcoin’s value as a neutral, decentralised, and borderless asset becomes increasingly crucial. He stated that Bitcoin’s position in the world has never been more important.
Crypto-asset investments are high-risk; you may lose your capital