Bitcoin Drops 7.5% as Trump Tariffs Spark Market Turmoil

Bitcoin (BTC) has experienced a significant decline, dropping by more than 7% in the past 24 hours, as global equity and cryptocurrency markets reacted to the implementation of US President Donald Trump’s country-specific reciprocal tariffs. These tariffs, set to take effect on April 9, have raised concerns about a potential global recession and widespread job losses, contributing to the market turmoil.

The leading cryptocurrency fell from approximately $82,300 on April 6 to a low of around $74,500 earlier today. This downturn has been mirrored by other major altcoins, with Ethereum (ETH), Solana (SOL), and XRP experiencing declines of 17.2%, 16%, and 15.8% respectively over the same period. The total crypto market capitalization has also seen a substantial decrease, shedding almost $130 billion.

Analysts have pointed out that Bitcoin’s price action has flashed a “death cross” on the daily chart, a bearish technical signal that occurs when the 50-day moving average (MA) drops below the 200-day MA. This indicator often suggests a potential downtrend or increased selling pressure in the market. Seasoned crypto analyst Ali Martinez highlighted that this signal may indicate further price pullbacks for the leading digital asset.

Veteran trader Peter Brandt shared a chart showing BTC trading in a symmetrical triangle pattern, with a wedge retest located at $81,024. Brandt hinted that BTC may follow a drop to the 50% retracement level of $54,000. A symmetrical triangle pattern in trading is a chart formation where the price consolidates with converging trend lines connecting a series of lower highs and higher lows, indicating a period of indecision before a potential breakout in either direction. A wedge retest refers to the price action where, after breaking out from a wedge pattern, the price returns to test the breakout level before continuing in the breakout direction.

Despite the heightened fears surrounding further price declines in BTC, some risk-seeking investors view this as an opportunity to accumulate more BTC at lower prices. CryptoQuant analyst BorisVest emphasized that if BTC falls between $65,000 to $71,000, it could offer a favorable buying opportunity for investors with a decent risk-reward ratio. At press time, BTC trades at $76,678, down 7.5% in the past 24 hours.