The crypto market endured fresh turbulence Wednesday after the Trump administration’s sweeping tariff hikes took effect, fueling fears of a prolonged trade war and dragging risk assets lower across the board.
Bitcoin (BTC) briefly touched $75,000 during early Asia trading before clawing back some losses, while Ether (ETH) plunged over 10%, falling below $1,500. The broader market followed suit, with top altcoins — including XRP, SOL, ADA, BNB, and DOGE — declining between 5% and 7%.
The downturn erased the gains from Tuesday’s fleeting relief rally, as traders reacted to the White House’s announcement that Chinese imports would face a 104% tariff beginning midnight. Additional duties on goods from more than 60 countries further heightened global trade tensions.
The CoinDesk 20 Index shed 2.2% over 24 hours, while total crypto market capitalization slid 6% — deepening a weeklong slump of nearly 15%. Memecoins and newer layer-1 tokens bore the brunt: Berachain’s BERA dropped 20%, and BONK, PEPE, and FLOKI each fell over 9%.
In equities, crypto-adjacent names joined the selloff. Bitdeer (BTDR) declined 8.7%, MicroStrategy (MSTR) fell 5.3%, and Coinbase (COIN) dipped 2.3%. DeFi Technologies (DEFTF) stood out with a double-digit rally, buoyed by rumors of a possible Nasdaq listing.
Adding to the volatility, bond markets saw historic dislocations. The 30-year U.S. Treasury yield spiked more than 50 basis points in three days — the sharpest such move since 1982 — prompting speculation of major unwinds in leveraged trades.
“This type of violent move typically signals forced liquidation rather than discretionary selling,” said Jim Bianco of Bianco Research. “There’s real stress emerging in the system.”
Investors Brace for More Downside — But Long-Term Outlook Holds
Market strategists say continued trade uncertainty could push BTC toward the $70,000–$75,000 zone in the near term.
“We’re entering a period of heightened volatility where cautious positioning is wise,” said Bitget Chief Analyst Ryan Lee in a Telegram message. “Still, for long-term investors, this pullback offers an attractive entry.”
Lee sees Bitcoin regaining strength later in 2025 if macro conditions stabilize or new crypto-friendly policy momentum emerges. “We could see Bitcoin testing $95K to $100K by year-end, especially with the halving tailwinds and growing institutional flows via ETFs,” he said.
While altcoins remain more vulnerable in the current environment, Bitcoin’s rising dominance — now near 60% — suggests underlying confidence in the asset’s role as a digital macro hedge.
