On Wednesday, Bitcoin (BTC) fell to nearly $75,000 before experiencing a slight rebound, coinciding with the implementation of Trump’s extensive global tariffs.
Ether (ETH) suffered a significant decline of 10%, leading the downturn among major cryptocurrencies, with xrp (XRP), dogecoin (DOGE), BNB Chain’s BNB, Solana’s SOL, and Cardano’s ADA all dropping over 5%. In total, the market cap shrank by 6%, compounding a 7-day decline reaching close to 15%.
Smaller cryptocurrencies faced even steeper price drops, with the popular newcomers Berachain’s BERA plummeting by 20%, while memecoins like bonk (BONK), pepe (PEPE), and floki (FLOKI) experienced declines exceeding 9%.
The trend of traders stepping back from leading cryptocurrencies continued, erasing Tuesday’s brief recovery as Trump advances aggressive initiatives aimed at significantly restructuring global trade. Tariffs on all imports from China were raised to 104%, along with tax increases on over 60 other trading partners.
U.S. Treasury yields continued to rise, with 30-year rates jumping by more than 20 basis points to 4.98%. This marks a significant shift from the typical safety that bond investments provide, presenting a concerning sign for traders.
Market analysts speculated that the sell-off might be linked to a forced liquidation by a major player.
“Since Friday’s close to now the 30-year yield has increased by 56 basis points in just three trading days,” stated Jim Bianco, a well-regarded founder in financial research, in a post. “The last time a yield rose this quickly in three days was on January 7, 1982, when the yield was at 14%.”
“Such a historic movement is indicative of enforced liquidation rather than typical decision-making by market managers at midnight ET,” he added.
Tonight, something has broken within the bond market. We’re witnessing a chaotic liquidation.
If I had to take a guess, the basis trade is completely unwinding.
Since Friday’s close to now… the 30-year yield has risen by 56 basis points in three trading days.
The last time this yield saw such a leap in just… pic.twitter.com/IS6qog4uog
— Jim Bianco (@biancoresearch) April 9, 2025
Increasing yields suggest declining bond prices, which raise the government’s borrowing costs and could worsen the federal deficit that is already heavily burdened by high debt levels.
There are concerns among investors that an extended trade war could weaken global trade, disrupt supply chains, and hinder U.S. economic growth, potentially putting more pressure on U.S. equity markets and Bitcoin, which often reflects the fluctuations of these markets.
The ongoing sell-off indicates that the market is factoring in current inflation; however, sustained uncertainty could alter this outlook.
Bears take charge
In the meantime, some traders are predicting a potential drop for Bitcoin to as low as $70,000 in the near future because of rising tariffs, which could further strain top cryptocurrencies.
“Investors should exercise caution in the short term; a further dip to $70,000–$75,000 for Bitcoin is feasible if trade tensions continue to escalate. Nevertheless, this downturn may offer an opportunity for long-term investment,” stated Ryan Lee, Chief Analyst at Bitget Research, in a Telegram message.
“Engaging in dollar-cost averaging for Bitcoin is a sound strategy now while keeping a lookout for altcoins such as Solana for potentially higher gains later on.” Lee remains optimistic about a recovery to peak prices if conditions improve in the upcoming months.
“If macroeconomic conditions stabilize or pro-crypto policies are introduced, we could witness Bitcoin reaching $95,000–$100,000 by late 2025, propelling the market cap beyond $3 trillion once again. Despite tariff pressures and a cautious market sentiment affecting altcoins, Bitcoin’s resilience and increasing dominance close to 60% indicate the strength of the ecosystem, bolstered by institutional adoption and beneficial long-term trends such as the halving cycle,” he concluded.