The crypto market has been rocked by a sharp sell-off following Donald Trump’s surprise announcement of sweeping trade tariffs. Bitcoin dropped over 7% to hover near $75,000, while Ethereum crashed nearly 14.5%, dragging the ETH/BTC ratio to its lowest level in five years. This panic sell-off wasn’t limited to crypto; global stock markets also nosedived, wiping out over $8 trillion in value last week.
Tariffs Trigger Panic Across Markets
On April 2, Trump said the U.S. would start charging a 10% tax on everything coming into the country. He also added extra taxes on goods from 185 countries, calling them the worst in unfair trade. These new tariffs will begin on April 9. U.S. customs started collecting the 10% tax over the weekend, right after the stock market had its worst week since 2020. As a result, U.S. futures dropped Sunday night, and Bitcoin also fell since investors started avoiding risky assets.
Trump’s new policy hit hard: a 10% tariff on nearly all imports, 34% on Chinese goods, and 20% on EU products. In response, China fired back with 34% tariffs on U.S. goods, triggering a risk-off sentiment globally. Trump’s tariff war caused a massive liquidation in the market with a $590M wipeout from the market, dropping Bitcoin below the $78K level, leading to a steep drop in both traditional and digital markets.
Within 24 hours, $868 million in crypto long positions were liquidated—the highest since March. The S&P 500 and Nasdaq saw nearly 6% declines, and crypto simply followed the pain.
Bitcoin Faces Technical Breakdown
Bitcoin didn’t just fall in price sadly, it broke a key rising wedge pattern, and a bearish “death cross” formed on the charts. This technical move is often a warning of a deeper downside. Analysts are now watching key levels like $74K as immediate support, $65K as the next line, and $57K as a last-ditch zone that buyers might defend.
On April 6, Bitcoin touched a high of $83,813 but quickly reversed. The MACD flashed a bearish crossover, and RSI signals showed the asset was oversold multiple times heading into April 7. While a brief golden cross hinted at recovery, fresh bearish momentum pushed BTC lower, potentially opening the door to a dip below $75K.
Analysts Weigh In
Economist Peter Schiff declared that crypto is “finally starting to crack,” criticizing Trump’s economic strategy and the idea of a Strategic Bitcoin Reserve. He also warned ETF investors of rough times ahead. Even the Trump-themed meme coin fell over 13%, now down nearly 90% from January highs.
But not everyone is bearish. Max Keiser sees this panic as the setup for a historic Bitcoin rally, predicting that BTC could hit $220,000 this month as global capital rushes to safe havens.
