$BTC

On April 7, 2025, $BTC experienced a significant downturn, with its price falling below $77,000 amid escalating global trade tensions. This decline reflects a broader trend affecting the cryptocurrency market, influenced by macroeconomic uncertainties and recent tariff measures.  

The market’s reaction is largely attributed to the intensifying trade conflict between the United States and China. President Donald Trump’s announcement of substantial reciprocal tariffs prompted China to retaliate with a 34% tariff on U.S. goods, effective April 10. These developments have heightened fears of a potential global recession, leading investors to seek safer assets and resulting in a sell-off in riskier markets, including cryptocurrencies. 

In the past 24 hours, approximately $1.2 billion in leveraged bets on rising cryptocurrency prices were liquidated, indicating significant losses for investors who had anticipated continued price increases. Crypto-related stocks also felt the impact, with companies like MicroStrategy experiencing sharp declines in premarket trading. Despite this volatility, MicroStrategy’s CEO, Michael Saylor, reaffirmed his belief in Bitcoin’s long-term potential, stating that it “offers resilience in a world full of hidden risks.” 

Technical indicators suggest bearish momentum for Bitcoin, highlighted by a “death cross,” where the 50-day moving average crosses below the 200-day moving average. This pattern indicates the possibility of further declines. Key support levels to monitor include $74,000, $65,000, and $57,000, while resistance is expected around $87,000. Investors are advised to observe these technical levels closely amid ongoing market instability. 

The recent market movements underscore the sensitivity of cryptocurrencies to global economic events and policy decisions. As the situation evolves, market participants should remain vigilant and consider both macroeconomic indicators and technical analysis when making investment decisions.