On Monday, April 7, 2025, Bitcoin’s price fell below the significant $80,000 threshold, trading around $78,065. This decline aligns with a broader market downturn triggered by the Trump administration’s recent tariff announcements. The administration imposed sweeping tariffs—20% on European Union imports, 26% on Japanese goods, and 34% on Chinese imports—set to take effect on Wednesday. These measures have intensified fears of a global trade war, leading to substantial sell-offs across various financial markets.
Impact on Major Cryptocurrencies
The cryptocurrency market has not been immune to these developments. Ethereum, the second-largest digital currency, experienced a significant drop of 11%, trading at approximately $1,571.04. Solana also declined by 9.9%, reaching about $105.58. Since its peak of $109,225 in January during President Trump’s inauguration, Bitcoin has plummeted nearly 28%.
Technical Indicators Point to Bearish Trends
Technical indicators suggest a bearish outlook for Bitcoin. The formation of a “death cross,” where the 50-day moving average falls below the 200-day moving average, indicates potential further declines. Key support levels to monitor include $74,000, $65,000, and $57,000. Conversely, resistance is anticipated around $87,000, where significant moving averages converge.
The recent downturn has also impacted crypto-related stocks. Shares of Coinbase Global fell by 10%, while MicroStrategy saw an 8% decline. These movements reflect a broader retreat from riskier assets amid escalating trade tensions.
Federal Reserve’s Response
In response to the market volatility, investors are closely monitoring the Federal Reserve’s actions. Chair Jerome Powell has acknowledged the increased risks of inflation and slowing growth due to the new tariffs but indicated that the Fed will assess the broader impacts before making any adjustments to interest rates.
As the situation unfolds, market participants are advised to stay informed and exercise caution, given the heightened volatility across both traditional and cryptocurrency markets.
