Bitcoin Dips Below $75,000 Amid Escalating US-China Trade Tensions
On April 7, Bitcoin prices dropped below $75,000, marking a 6% decline in 24 hours due to escalating US-China trade tensions. This decline is part of a broader sell-off affecting both crypto and traditional markets.
US-China Trade Tensions Impact Markets
- US President Donald Trump imposed tariff hikes, prompting countermeasures from China.
- Wall Street experienced significant losses, with the S&P 500 down 6%, Dow Jones down 5.5%, and Nasdaq down 5.8% on April 4.
- Market analysts predict further selling pressure as trading resumes.
Ethereum and Altcoins Experience Larger Losses
- Ethereum lost 13%, exceeding Bitcoin's drop.
- SOL and DOGE fell over 10%; ADA decreased by 10.40%; XRP and BNB lost 7% and 6%, respectively.
- The total cryptocurrency market capitalization stands at $2.62 trillion.
- Bitcoin’s 24-hour trading volume surged to $26 billion, an increase of 80% amid the sell-off.
Potential Relief from Government Crypto Reserves
- US government agencies are set to disclose their crypto assets, which could lead to a relief rally.
- The Fear and Greed Index indicates a sentiment of "Extreme Fear," suggesting panic-driven selling.
- Bitcoin needs to regain the $80,000 level or risk retesting its previous all-time high around $74,000.
