Over the past 24 hours, the cryptocurrency market has experienced significant volatility driven by shifting macroeconomic news. Conflicting reports about former President Trump's tariff policies—from rumors of a "90-day suspension" to official denials—triggered sharp price swings. Bitcoin plunged to a low of $74,436 before rebounding sharply to $81,200, reflecting a daily volatility range of 9%.
As of this writing, Bitcoin is holding near the critical $79,000 support level. Ethereum, which briefly fell below $1,500, has struggled to regain ground, while XRP is trading around $1.92.
Derivatives markets show heightened避险情绪 (risk-off sentiment), with total open interest across exchanges dropping 10% to $91.19 billion. Data from Coinglass indicates over $1 billion in liquidations occurred in the past 24 hours. Bitcoin's market dominance has slightly increased to 62.6%.
What’s Driving the Current Market Volatility?
Recent price action appears heavily influenced by macroeconomic developments rather than cryptocurrency-specific factors. The tariff-related selloff represents an event-driven correction rather than a reflection of deeper economic issues. As trade policy remains fluid, markets are reacting to every headline, creating unpredictable swings.
Ongoing geopolitical and economic uncertainties continue to dominate market sentiment. The most aggressive tariff policies since the 1930s are creating ripple effects across both traditional financial markets and digital assets. In the short term, cryptocurrencies are likely to remain volatile as sentiment fluctuates with each development in trade negotiations.
Market participants generally dislike uncertainty, which suggests we can expect continued volatility in the coming weeks and months. Any sustained rally may be delayed until there's greater clarity on policy directions—unless there are strong pro-cryptocurrency statements from political leaders.
Key Technical Levels to Watch
Bitcoin recently lost the crucial $79,000-$80,000 support zone that had held firm for the past month. This level marked the bottom of the trading range following the historic rally. The next significant support sits around $72,000, which represented the pre-election peak.
Short-term projections suggest Bitcoin may consolidate between $81,600 and $88,700, with the $86,000 level serving as a critical "maximum pain" point for options expiring on April 11th.
For Ethereum, holding above $1,500 remains psychologically important, while XRP faces resistance around the $2.00 level.
Expert Perspectives on Market Direction
CryptoQuant's Assessment
CryptoQuant Head of Research Julio Moreno maintains a cautious stance: "Buying the dip right now is like catching a falling knife! Bitcoin's fundamental situation hasn't improved. The Bull-Bear Market Indicator shows only one bullish signal currently."
Institutional Viewpoint
Pantera Capital General Partner Cosmo Jiang told Bloomberg: "Current market movements are primarily macro-driven. This tariff-induced pullback represents an event-driven correction rather than underlying economic problems. Just as tariff policies are artificially introduced variables, the Trump administration could equally withdraw these measures when they believe they've obtained sufficient concessions from other countries."
Trading Firm Outlook
Stephen Wundke, Strategy and Revenue Director at quantitative digital asset investment firm Algoz, notes: "For now, markets hate uncertainty, so we can expect more volatile trading in the coming weeks/months, and the next rally will be delayed—unless Trump makes another strong statement about the crypto industry. The only certainty is that there's no certainty in the messages currently coming from the White House."
Technical Analysis Perspective
BTC Markets Financial Head and crypto analyst Charlie Sherry shared in his market update: "Bitcoin recently lost the key $79,000 to $80,000 support that it had successfully held for the past month. This support level marked the bottom of the range after the historic pullback. The next key support is around $72,000, which was the pre-election high. A potential shift in Trump's stance or emergency intervention by the Fed are two factors that could help Bitcoin price recover above $80,000."
Research Outlook
Bitcoin researcher Axel Adler Jr. points out: "Medium-term, if macroeconomic uncertainty persists and expectations for Fed rate cuts increase, some traditional market funds might flow toward Bitcoin for support. However, we must remain vigilant about the risk of sharp corrections due to overall investor risk-off sentiment."
Long-Term Regulatory Implications
Greg di Prisco, co-founder of centralized stablecoin development company M^0 Labs, commented on the Trump administration's long-term impact on cryptocurrency: "Perhaps more important than Trump's direct actions is his influence on the legislative process, which represents the most important development for the industry. Stablecoin legislation being considered by state governments would position the United States favorably in competition."
Prisco shared his three predictions for the crypto industry in 2025:
- "I believe you'll see the GENIUS Act become the legislation that the government ultimately agrees on and passes, though this might happen in the second half of the year."
- "More traditional financial institutions will begin launching tokenized products inspired by the success of BlackRock's BUIDL."
- "Stablecoins will continue to prove themselves as cryptocurrency's killer use case. They will begin integrating into mainstream fintech applications."
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Frequently Asked Questions
What caused Bitcoin's recent price volatility?
Bitcoin's recent price swings were primarily triggered by macroeconomic developments, specifically conflicting reports about potential tariff policies. The market reacted strongly to rumors of a 90-day suspension followed by official denials, creating a 9% price range within 24 hours.
What are the key support levels for Bitcoin?
The crucial support zone is between $79,000-$80,000, which held for a month before recently breaking. The next significant support sits around $72,000, which represented the pre-election peak. Resistance levels to watch include $81,600 and $86,000.
How are institutional investors responding to the volatility?
Derivatives data shows institutions are reducing exposure, with open interest declining 10% to $91.19 billion. The $1 billion in liquidations over 24 hours indicates significant position unwinding. However, some analysts believe traditional funds might flow into Bitcoin if macroeconomic uncertainty persists.
What long-term developments could support cryptocurrency prices?
Key factors include potential regulatory clarity through legislation like the GENIUS Act, increased institutional adoption of tokenized products, and broader integration of stablecoins into mainstream financial applications. Political statements supporting the industry could also provide catalysts.
How does trade policy affect cryptocurrency markets?
Trade policies create macroeconomic uncertainty that affects all risk assets, including cryptocurrencies. Tariffs specifically can impact inflation expectations, which influences monetary policy decisions that ultimately affect liquidity conditions across markets.
Should investors buy the current dip?
Opinions are divided. Some analysts caution that buying now is "like catching a falling knife" as fundamental metrics haven't improved. Others suggest that event-driven selloffs often create buying opportunities once the uncertainty resolves, particularly for long-term investors.