Crypto Market Plummets 5.75% as Tariffs Spark Panic Selling

The crypto market is experiencing a significant downturn due to the implementation of new global tariff policies, causing widespread panic among investors. This turmoil has led to two distinct reactions from crypto whales: some are aggressively selling off their assets to mitigate losses, while others are strategically accumulating cryptocurrencies in anticipation of a market rebound.

Bitcoin and Ethereum have both seen substantial declines, with Bitcoin dropping below $75,000, marking a 5.75% decrease in the past 24 hours. Ethereum has fared even worse, plummeting below $1,400, a 9.36% loss over the same period. The Fear and Greed Index indicates that the market is in a state of "Extreme Fear," further fueling panic selling and driving major cryptocurrencies to multi-week lows.

Several high-stakes investors have chosen to liquidate their assets to avoid forced liquidation or minimize risk. For instance, the "Long ETH Whale" sold 5,094 ETH, accepting a loss exceeding $40 million. Similarly, Pump.fun sold 84,358 SOL at an average price of $105. Politically linked projects were not spared either, with WLFI liquidating 5,471 ETH at an average price of $1,465. Other notable transactions include the "7 Siblings" group selling MKR, three whale wallets unstaking a combined 168,498 SOL worth $17.86 million, and one whale withdrawing 4,000 ETH from ether.fi and transferring it to Binance.

Despite the widespread selling, some crypto whales view the current dip as a buying opportunity. Data from IntoTheBlock shows that Bitcoin net outflows from centralized exchanges surpassed $220 million, indicating long-term accumulation. Additionally, one whale spent $6.93 million to acquire 4,677 ETH at an average price of $1,481. According to analyst Ali, as Bitcoin rebounded from $74,500 to $81,200, 1,715 transactions over $1 million were recorded on-chain, suggesting confidence from "smart money" in a potential market reversal.

The current crypto crash is closely linked to new US tariff policies, which are raising fears of a global economic downturn. This pressure is weighing on crypto markets and rippling across traditional financial markets, creating a domino effect. Looking ahead, the market could face two possible scenarios. If Bitcoin fails to hold above $74,000, forced liquidations could intensify, pushing prices even lower. Ethereum might fall to the $1,250–$1,300 range if panic persists. Alternatively, ongoing crypto whale accumulation could fuel a rebound, potentially lifting Bitcoin back to $80,000 and Ethereum above $1,500, especially if there are positive developments from tariff negotiations.