Bitcoin is already at $75 thousand: crypto has lost almost everything it gained under Trump due to tariffs
7 April 2025 14:37
The cryptocurrency market has suffered a sharp decline, losing almost all of the gains made after Donald Trump won the US presidential election in early November 2024. The reason for this was a new wave of sell-offs caused by the tariff policy of the US president, who paradoxically had previously promised to support this asset class. This is reported by "Komersant Ukrainian" with reference to Bloomberg.
Thus, on April 7, bitcoin fell below $75,000 for the first time since November 7, suffering a 5.3% drop before recovering slightly. According to CoinGecko, the total market capitalization of all cryptocurrencies has fallen by about 11% to $2.5 trillion, which effectively brings the market back to the level at the time of Trump’s victory. Ether fell to its lowest level since March 2023.
The drop comes amid Trump’s massive tariffs, which have already wiped out trillions of dollars of value from global stock markets. This has dashed hopes that cryptocurrencies would withstand the pressure better than other assets. Asian and European stocks, as well as U.S. stock index futures, fell on Monday, while the yen rose, indicating deepening instability in financial markets.
“For a moment, it looked like cryptocurrencies might hold steady, but thanks to the 24-hour nature of cryptocurrency markets, investors woke up on Sunday in full ‘sell-off mode,'”
– Charlie Sherry, head of finance and cryptocurrency analyst at BTC Markets, said in a research report.
Coinglass data shows that approximately $1.2 billion in bullish cryptocurrency bets were liquidated in the last 24 hours, the most since early December. The options market indicates that the selling pressure may continue.
The open interest – that is, the total number of outstanding contracts – for put options with a strike price of $70,000 is now higher than for any other term, according to data from derivatives exchange Deribit. This underscores the growing demand for further downside protection.
A put option (or call option) is a financial contract that gives the holder the right, but not the obligation, to sell an underlying asset (such as stocks, bitcoin, or other securities) at a predetermined price (strike price) within a certain period of time.
Main characteristics of a put option:
gives the right to sell an asset at a fixed price;
used as insurance against a fall in the price of an asset;
becomes profitable when the asset price falls below the strike price.
When investors expect the market to fall, they often buy put options to protect their investments or to make a profit in a falling market. The increase in demand for put options is an indicator that market participants are preparing for a possible further decline in prices.
As of 1:00 p.m. Kyiv time, bitcoin was trading at $76,600, and ether was trading at $1,493.
Digital assets had previously shown some resilience to the panic that gripped markets after Trump first announced his tariff program, hinting at a possible deviation from the gravitational pull of tech stocks. However, Monday’s selloff suggests that the high positive correlation between cryptocurrencies and the Nasdaq 100 index, which has prevailed since the COVID-19 pandemic, may persist.
“Cryptocurrencies are usually a leading indicator for risky assets. Expect sharper corrections when the US stock markets open today,”
– comments Julia Zhou, COO of cryptocurrency market maker Caladan.
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Trump and cryptocurrencies
Bitcoin hit a record high of $107,071.86 on January 20, when Trump was sworn in as the 47th president of the United States, and has risen 40% since the election in early November on hopes of cryptocurrency-friendly regulation from the Trump administration.
Donald Trump, who has previously called cryptocurrencies a scam, supported digital assets during his campaign, promising to make the United States the “cryptocurrency capital of the planet.” This change in his position can be attributed, in no small part, to the injections into his campaigns from the cryptocurrency markets.
A few days after taking office, Trump ordered the creation of a cryptocurrency working group to develop new regulation of digital assets and explore the possibility of creating a national cryptocurrency reserve.
A few days before his inauguration , Trump launched his own cryptocurrency, $TRUMP.
However, almost all of the crypto owners’ wealth gained thanks to Trump disappeared due to his own trade war policy, which caused a crisis in global markets.
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