Bitcoin price today: Token slumps to $78,000 levels, crypto markets face sharp sell-off amid Donald Trump\u2019s tariffs hit

Crypto Markets Reel as Tariff Fears Spark Global Sell-Off

The cryptocurrency market experienced a significant downturn on April 7, mirroring a broader sell-off in global markets. Fears surrounding potential new tariffs announced by United States President Donald Trump sent shockwaves through financial systems, impacting digital assets alongside traditional equities, as reported by Bloomberg.

Bitcoin (BTC), the world’s leading cryptocurrency, saw its price tumble sharply as Asian markets opened. The token plunged roughly 7% to hit $77,077 in Singapore before showing a slight recovery.

Widespread Impact: Bitcoin, Ethereum, and Altcoins Suffer

The sell-off wasn’t confined to Bitcoin. Ethereum (ETH), the second-largest cryptocurrency, also experienced a steep decline, sinking to $1,538 – its lowest intraday level since October 2023. Other major altcoins like Solana (SOL) weren’t spared, dropping over 11%.

Edul Patel, Co-founder and CEO of Mudrex, noted the spillover effect, telling Livemint, “The broad sell-off in global markets has spilled into crypto — hitting altcoins even harder.”

This sentiment was echoed by Avinash Shekhar, Co-Founder & CEO of Pi42, who stated, “The sudden plunge of Bitcoin below the $80,000 threshold and overall crypto market selloff that erased more than $160 billion in value marks a pivotal point fueled by macroeconomic uncertainty and investor wariness.”

Market Metrics Highlight Investor Anxiety

Several key indicators underscored the market’s anxiety:

• Liquidations Surge: Data from Coinglass revealed approximately $745 million worth of bullish crypto bets were liquidated in the preceding 24 hours, the highest level in nearly six weeks. Tweets circulating also mentioned significant liquidation figures, highlighting the rapid unwinding of leveraged positions.
• Market Cap Decline: The total global crypto market capitalization dropped by roughly 6.59% to $2.5 trillion, according to CoinMarketCap data on April 7.
• Trading Volume Spike: Despite the price drop, total crypto trading volume surged dramatically by 137.91% to $101.84 billion over 24 hours, indicating intense market activity, potentially including panic selling and dip buying.
• Stablecoin Dominance: Stablecoin volume reached $95.57 billion, accounting for a massive 93.84% of the total 24-hour crypto market volume. This often suggests a flight to safety within the crypto ecosystem. Tether (USDT) volume notably surpassed even Bitcoin’s.
• Bitcoin Dominance Increase: Bitcoin’s market dominance rose slightly to 62.52%, perhaps indicating investors favoured the perceived relative safety of Bitcoin over more volatile altcoins during the downturn.

Expert Analysis: Macro Factors and Key Levels

Experts pointed towards macroeconomic factors as the primary driver behind the crypto sell-off.

“Macro is driving the action right now,” Cosmo Jiang, general partner at Pantera Capital, told Bloomberg. He suggested the tariff-driven pullback might be temporary, stating, “The tariff-driven pullback is idiosyncratic and not because of deeper issues in our economy.”

The CoinSwitch Markets Desk highlighted investor apprehension regarding the economic implications of the tariffs, noting the slump indicates “a clear risk-off sentiment across markets”.

Avinash Shekhar added context on the link between traditional and crypto markets: “As futures on Wall Street dipped and ‘Black Monday’ repeat fears emerged, the coupling between traditional markets and crypto holdings becomes more visible.”

From a technical perspective, Sean McNulty, head of APAC derivatives at FalconX, mentioned that options markets suggested selling pressure might persist. He identified key support levels: “Key support levels for Bitcoin and Ether are $75,000 and $1,500, respectively.”

What’s Next? Fear, Hope, and Critical Thresholds

Investor sentiment, as measured by the Fear and Greed Index, edged towards ‘Extreme Fear’. However, potential positive catalysts remain on the horizon.

Edul Patel pointed to the upcoming disclosure of US government crypto holdings: “A sizable confirmation could trigger a relief rally.” He also emphasized the importance of Bitcoin reclaiming a key level: “For now, Bitcoin needs to reclaim the $80,000 mark or it risks retesting its previous all-time high near $74,000.”

Optimism also stems from potential regulatory developments, with the CoinSwitch Markets Desk noting an ongoing SEC review of crypto guidance could “ease regulatory pressures on the digital assets sector.”

However, uncertainty persists. Shekhar cautioned, “The incessant pressure emanating from worldwide financial anxiety and short-term sales may continue challenging Bitcoin’s backbone as well as the overall marketplace’s stability.”

Current Prices (as of reporting time, April 7, ~7 am):

• Bitcoin (BTC): ~$78,938 (Down 5.69% in 24h)
• Ethereum (ETH): ~$1,590.06 (Down 12.10% in 24h)
• Solana (SOL): ~$106.53 (Down 11.44% in 24h)

The crypto market remains closely tied to global macroeconomic developments, with the latest tariff concerns triggering significant volatility. Investors are closely watching key support levels and potential regulatory news amidst heightened market anxiety.

(Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.)