Bitcoin Seeks $70K, Ethereum Plunges 10% as Trump Tariffs Become Global Threat
“Investors should be cautious in the short term as there is a possibility of further decline in Bitcoin to $70,000-$75,000 if trade tensions escalate,” one trader said.
Author: Shaurya Malwa | Edited by: Parikshit Mishra Updated: April 9, 2025, 6:08 AM Published: April 9, 2025, 5:46 AM
Key points:
- Bitcoin has fallen to nearly $75,000 after Trump's global tariffs hit key cryptocurrencies.
- U.S. Treasuries have seen a sell-off and 30-year yields have risen, pointing to potential economic strain.
- Analysts advise caution in the short term, but see the potential for a Bitcoin recovery if macroeconomic conditions improve.
Bitcoin (BTC) fell to nearly $75,000 on Wednesday morning before recovering slightly following Trump's massive global tariffs.
Ether (ETH) fell 10%, leading the losing tokens, while xrp (XRP), dogecoin (DOGE), BNB Chain, Solana's SOL, and Cardano's ADA all fell more than 5%. The overall market cap fell 6%, continuing a 7-day decline of nearly 15%.
Smaller tokens are seeing even bigger losses, with BERA from well-known startup Berachain down 20%, and memocoins bonk (BONK), pepe (PEPE), and floki (FLOKI) down more than 9%.
Traders' retreat from major cryptocurrency names continued, erasing gains from Tuesday's rally as Trump pushes ahead with plans to radically overhaul global trade. Tariffs on all goods from China have been increased to 104%, along with import duties on more than 60 trading partners.
U.S. Treasuries continued their selloff, with the 30-year yield rising more than 20 basis points to 4.98%. The move marks a departure from the safe haven status that bond investors typically enjoy and is a highly concerning sign for traders.
Some market analysts have suggested that the sell-off may have been caused by the forced liquidation of a major player.
“From Friday's close to today, the 30-year yield has risen 56 basis points in three trading days,” commented Jim Bianco, the noted founder of Bianco Research, in a post in X. “The last time such a sharp move was seen in three days (close to the close) was January 7, 1982, when it was 14%.”
“This historic move was driven by forced liquidation, not by managers' decisions about betting prospects at midnight ET,” he added.
Something broke in the bond market tonight. We are seeing disorderly liquidations.
If I had to GUESS, the underlying trade is in complete reversal.
From the close of trading on Friday to now… the yield on the 30-year note has risen 56 basis points in three trading days.
The last time this yield grew this much was in 3… pic.twitter.com/IS6qog4uog
– Jim Bianco
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