Bitcoin Dips to Nearly $75,000 as Ether Falls 10% Amid Tariff Implementation
Bitcoin (BTC) fell to nearly $75,000 before recovering slightly as new global tariffs from Trump took effect. Ether (ETH) dropped 10%, leading losses among major cryptocurrencies, while others like XRP, DOGE, BNB, SOL, and ADA fell over 5%. The overall market capitalization decreased by 6%, marking a total 15% decline over the past week.
Smaller tokens experienced larger losses, with Berachain’s BERA down 20% and memecoins BONK, PEPE, and FLOKI declining more than 9%. Traders are retreating from crypto majors, reversing gains from a previous relief rally due to escalated tariffs on Chinese goods and import taxes on over 60 trading partners.
U.S. treasuries faced a selloff, with 30-year yields climbing over 20 basis points to 4.98%. This unusual move raises concerns about rising borrowing costs for the U.S. government, potentially worsening the federal deficit. Investors are worried that extended trade tensions could slow U.S. economic growth and impact global trade.
Market analysts suggest this selloff may be linked to forced liquidation events. Jim Bianco noted a significant rise in yields reminiscent of historical trends from January 1982. Some traders predict Bitcoin could drop to $70,000 amidst these conditions, indicating potential pressure on crypto majors.
- Short-term caution is advised for investors.
- A dip to $70,000–$75,000 for Bitcoin is possible if trade tensions escalate.
- Dollar-cost averaging into Bitcoin may be prudent, with attention to altcoins like Solana.
- Potential recovery to peak prices ($95,000–$100,000) could occur by late 2025 if macro conditions stabilize.
- Bitcoin's rising dominance near 60% indicates solid fundamentals amid market pressures.