Bitcoin plummeted 11.36% to $88,000 as crypto markets took a nosedive this week. Dreams of hitting that sweet $100K milestone? Crushed. Thanks a lot, Trump. His new reciprocal trade tariffs sent shockwaves through the crypto world, turning investor confidence into a puddle of anxiety.
The bloodbath wasn’t pretty. A staggering $900 million in leveraged positions got liquidated as prices bounced between $84,713 and $91,000. Brutal. Long liquidations alone accounted for $400 million. Seems like some traders never learn the overleveraging lesson.
Technical indicators painted a grim picture. Bitcoin crashed through its 200-Day SMA support—always a bad sign. The RSI stayed below 50, basically screaming “weak momentum” to anyone paying attention. Not all doom and gloom though. The MACD crossover hints at a potential rally. Eventually.
Technical analysis looks grim—Bitcoin below 200-Day SMA, RSI screaming weakness, but that MACD crossover whispers hope.
Altcoins got hammered too. Ethereum dropped 10%, XRP tanked 12%, and even the darlings Solana and Cardano weren’t spared with 6% declines. The entire crypto market lost $500 million in value. Ouch.
Interestingly, peak loss realization hit just $377 million—lower than previous corrections. Long-term holders barely flinched. They’ve seen this rodeo before. Meanwhile, panic-selling short-term holders (those 3-6 month folks) lost $9.5 million. Rookies.
Trump’s Strategic Bitcoin Reserve Order didn’t help matters. Nobody knows what to make of it, and markets hate uncertainty. Add surging gold prices stealing crypto’s thunder, and you’ve got yourself a perfect storm. The negative correlation between Nasdaq and gold suggests investors are seeking traditional safe havens during market volatility.
Recovery now hinges on breaking resistance at $88K. Bitcoin’s currently dancing around key Fibonacci retracement levels—somewhere between 78.6% and 61.8% for those keeping score. ETF inflows are helping cushion the blow, providing some much-needed liquidity. The widening bid-ask spread indicates deteriorating market liquidity, making it harder for traders to execute orders without affecting prices.
Will crypto bounce back? Probably. It always does. But with these tariffs looming and gold looking mighty attractive, Q2 2025 might be rockier than expected.
