I. Market Overview
This week, the crypto market experienced severe fluctuations due to Trump's tariff policy, ultimately rebounding under the push of institutional funds.
1. Price volatility
Bitcoin (BTC):
Dropped to a low of $75,000 on April 7 (a new low since October 2023), rebounding to $85,000 on April 10, with a three-day increase of 13%.
The weekly volatility exceeds 18%, far higher than gold and U.S. stocks.
Ethereum (ETH):
Lowest point at $1,420, rebounding to close at $1,547, with a weekly increase of 8%.
NFT Market:
NFT trading volume surges for projects like Defi Dungeons and Taproot Wizards, with a 24-hour trading volume reaching $14 million.
April 7: 460,000 people liquidated in the global crypto market, amounting to $1.418 billion (Coinglass data).
April 10: The number of liquidations decreased to 130,000, but short sellers lost $464 million, indicating a rapid shift in market sentiment.
3. Policy and event impacts
Trump's tariff policy:
On April 2, signed an executive order for 'reciprocal tariffs', triggering global trade concerns, causing the crypto market to plummet in sync with U.S. stocks.
Announced on April 10 to postpone tariffs for 90 days, reversing market sentiment, with BTC increasing over 5% in one day.
Institutional dynamics:
Bitcoin ETF inflow of $770 million (year-to-date), mining companies under pressure but institutional holdings exceed 5%.
4. Technical and fundamental analysis
BTC Technical perspective:
Key support level at $80,000 remains solid; if it breaks the resistance level of $88,000, it may challenge $90,000.
ETH Fundamental perspective:
Ethereum 2.0 upgrade drives the development of the DeFi ecosystem, increasing developer and user activity.
II. Risks and Outlook
Short-term risks: Uncertainty of Trump's tariff policy and ongoing global trade frictions.
Long-term trend: Institutionalization accelerates, Bitcoin may become the core asset of 'digital gold'.
