TLDR
Bitcoin dropped to nearly $75,000 and Ether fell 10% as Trump’s global tariffs took effect
Total crypto market capitalization decreased by 6%, extending a 7-day slide to nearly 15%
U.S. Treasury yields soared, with 30-year yields up more than 20 basis points to 4.98%
Analysts suggest Bitcoin could fall to $70,000 if trade tensions escalate but see potential recovery to $95,000-$100,000 by late 2025
Some crypto experts now believe Bitcoin may outlast the U.S. dollar as a store of value amid growing economic uncertainty
Bitcoin dipped to nearly $75,000 early Wednesday as President Donald Trump’s sweeping global tariffs went into effect, triggering a broader cryptocurrency market selloff. Ether plunged 10%, leading losses among major tokens, while the total crypto market capitalization decreased by 6%, extending a 7-day slide to nearly 15%.
The selloff came as tariffs on Chinese goods were hiked to 104%, along with import taxes on over 60 trading partners. The measures, which took effect past midnight Tuesday, represent a major escalation in trade tensions between the world’s largest economies.
Smaller tokens showed even deeper losses. Trendy upstart Berachain’s BERA dropped 20%, while popular memecoins like Bonk, Pepe, and Floki fell more than 9%. Major altcoins were also hit hard, with Dogecoin down 16.3% on the day, while Solana and Cardano have fallen 18% and 23.7% over the past week.
Bitcoin is now down roughly 30% since its January peak above $109,000, which occurred right before Trump’s inauguration. The current price represents a major correction from the all-time highs reached earlier this year.
Market Liquidations and Bond Yield Surge
Liquidation data shows market distress, with approximately $411 million in positions liquidated over the last 24 hours. “It’s been a miserable run for investors since the start of February, with more than $1.2 trillion in value wiped from the crypto market,” said Pav Hundal, lead market analyst at Swyftx.
The crypto market decline mirrors broader financial market turmoil. Asian markets opened sharply lower on Wednesday, with Japan’s Nikkei 225 falling 2.6% by the midday break, and Australia’s ASX 200 losing 2%.
U.S. treasuries extended their selloff, with 30-year yields soaring more than 20 basis points to 4.98%. 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.
“Since Friday’s close to now the 30-year yield is up 56 bps, in three trading days,” Jim Bianco, founder of Bianco Research, said in an X post. “The last time this yield rose this much in 3 days was January 7, 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
Analysts Point to Buying Opportunity
Despite the market downturn, some analysts see a potential buying opportunity for long-term investors. “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 suggests dollar-cost averaging into Bitcoin now, with an eye on altcoins like Solana for higher-risk upside later. He remains optimistic about a recovery to peak prices 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.
The broader crypto market’s recent performance has been closely tied to traditional financial markets, with Bitcoin typically mirroring the ebbs and flows of U.S. markets.
Investors worry that a prolonged trade war could weaken global trade, disrupt supply chains, and slow U.S. economic growth. This could further pressure U.S equity markets and cryptocurrencies.
The first Treasury auction of three-year notes following Trump’s new tariff policy witnessed the weakest demand since late 2023. This drop-off has raised concerns about waning foreign investors’ appetite for U.S. government debt as trade tensions escalate.
Bitcoin as Dollar Alternative
The economic uncertainty has also reignited discussions about Bitcoin’s potential as an alternative to the U.S. dollar. “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.
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 U.S. dollar waning and other foreign currencies seen as “even weaker,” investors are left with fewer choices. He argued that gold, typically seen as a safe harbor amid uncertainty, also has drawbacks around shipping and storage.
The U.S. 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.
Bitcoin author Saifedean Ammous suggested in an April 8 X post 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.
As trade tensions continue to unfold, all eyes will be on how quickly the U.S. can negotiate new trade deals with its partners. “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 noted.
