—— In-depth analysis of market crash reasons, 3 strategies help you hedge and bottom-fish!\u003cc-12/\u003e

🔥 Event update: Bitcoin crashes, the market is bleeding

On April 3, 2025, U.S. President Trump announced **'reciprocal tariffs' on multiple countries globally, including a significant increase in import tariffs by 36% on economies such as Vietnam (46%), the EU (20%), Japan (24%), Korea (25%), etc. After the announcement, Bitcoin plummeted rapidly from a high of $88,500, touching a low of $77,000, with a 24-hour drop exceeding 8%; the total liquidation amount in the crypto market surpassed $1 billion**, with over 50,000 investors liquidated.

Key data overview:

  • Nasdaq futures plummet 4%, Bitcoin's correlation with US stocks rises to 0.74, exacerbating the downward trend;

  • Gold skyrocketed to $3160/ounce, hitting a historical high, as funds accelerate fleeing risk assets;

  • Crypto ETF saw a net outflow of $8.7 billion in a single day, with institutional hedging sentiment reaching a yearly peak.

🔍 In-depth analysis: Three main culprits of the crash

1. Tariff shocks global liquidity

Trump's new policy directly targets technology manufacturing countries (such as Vietnam, South Korea), raising concerns about supply chain disruptions. Chip stock Nvidia plummeted after hours, tech stocks dragged down the Nasdaq, and Bitcoin, as a 'digital tech asset', faced pressure.

2. Chain reaction of liquidations

After Bitcoin fell below the key support level of $82,000, it triggered $580 million in long liquidations, and panic selling further amplified the drop. The largest single liquidation occurred on Binance, amounting to $12 million.

3. Institutional withdrawal for hedging

Grayscale GBTC saw a net redemption of $320 million in one day, and fund inflows for BlackRock's spot ETF plummeted by 60%. Analysts pointed out: 'Institutions are reassessing the hedging attributes of crypto assets in the trade war.'

🚨 Emergency response: Retail survival guide

Strategy 1: Short-term hedging

  • Short selling hedge: Open a BTC/USDT short position on Binance (leverage ≤ 5 times), set stop loss at $81,000;

  • Switch to stablecoins: Convert 30% of holdings to USDT or FDUSD to avoid further shrinkage.

Strategy 2: Monitoring bottom-fishing signals

  • On-chain data: If a whale address (holding ≥ 1000 BTC) accumulates more than 10,000 coins in a single day, it may indicate that the bottom is near;

  • Technical indicators: Monitor whether the 4-hour RSI drops below 25 (oversold range), MACD golden cross is a rebound signal.

Strategy 3: Adjusting positions to anti-dip assets

  • Gold-related tokens: Such as PAXG (gold stablecoin), recently rose 3% against the trend;

  • Compliant RWA projects: Ondo Finance (ONDO) supported by BlackRock fund inflows, only down 2%.

⚠️ High-risk warning: These operations may lead to total loss!

  • Blindly bottom-fishing: $77,000 is not an absolute bottom; BTC halved during the 2018 trade war;

  • High leverage betting on a rebound: Volatility index (BVOL) has soared to 120, with a very high risk of liquidation;

  • Superstitious about 'Trump's favorable policies': Although it may weaken dollar hegemony in the long run, short-term policy shocks cannot be underestimated.

📊 Bulls vs Bears: Where is the bottom?

  • Pessimists: If the Nasdaq continues to break down, BTC may dip to $69,000 (200-day moving average);

  • Optimists: After the tariff negatives are all out, a rebound before the halving is expected, targeting $95,000.

📢 Voting interaction: Do you choose to cut losses, wait and see, or bottom-fish?
👉 Stop loss and exit 🆚 $80,000 ambush 🆚 $75,000 all-in

📌 Conclusion: The golden rule in a crisis

History shows that black swan events are often opportunities for wealth redistribution, but must be remembered:

  1. Position control: Do not exceed 15% of total assets in single cryptocurrency holding;

  2. Information verification: Monitor liquidation data in real-time via [CoinGlass] to avoid emotional decisions;

  3. Long-term perspective: With the halving approaching in 2025, the average rebound after a crash in historical cycles reaches 217%.

Immediately forward this article and follow 'Director Quant' to get the (real-time tracking table of on-chain whale movements)!
(Risk warning: This article does not constitute investment advice, please operate with caution.)

📚 Data source

  • Details of Trump's tariff policy: [Caixin]

  • Bitcoin liquidation data: [CoinGlass]

  • Institutional fund flows: [Bloomberg]

💬 Comment section interaction: What is your holding cost? How to cope with this round of crash?