MOSCOW, April 7. /TASS/. The US duties imposed on America's trade partners and mass liquidation of traders' positions have sent bitcoin tumbling, experts said as they predicted a further freefall was well within the realm of possibility for the cryptocurrency.
Over the past day, bitcoin, according to the Binance exchange, lost more than 10% of its value, as it is now trading at $75,000, its lowest since November 7, 2024.
"This past week has been a tough one for the entire crypto market and for bitcoin in particular. Under pressure, bitcoin broke through key support at $80,000 and is now heading towards $75,000, dragging altcoins down with it. It is quite possible that it will hit the $70,000 mark soon, and if the pressure does not ease, even lower," Vladislav Antonov, a financial analyst at Bitriver, told TASS.
He attributed the fall first of all to the duties imposed by US President Donald Trump on key trade partners, including China and the UK, which triggered panic in the commodity and stock markets: the S&P 500, Dow Jones and the Nasdaq indices suffered their worst losses since the March 2020 pandemic. Second, he cited widespread liquidation of traders’ positions. The global crypto exchanges liquidated positions of more than 461,000 traders worth $1.43 billion in a day, the bulk of which were bitcoin, according to the Coinglass platform. About $1.22 billion of the liquidations accounted for long positions, and $205.8 million for short positions. The largest single liquidation from the past 24 hours was filed on the OKX crypto exchange in a BTC-USDT pair, worth $7.08 million.
Ilya Sivoplyas, head of the exchange trade department at the Whitebird cryptoplatform, believes that bitcoin's drop below $75,000 should be viewed as being part of a broader economic and geopolitical crisis. "Such significant movements often portend new long-term trends. Donald Trump's measures are rewriting the rules of international trade, driving up import costs, encouraging the return of production to the United States and intensifying the processes of deglobalization. China's response in the form of mirror sanctions has shaken global markets and heightened investor anxiety," the expert added.
What’s next for bitcoin
Bitriver believes that in the short term, future market movements will continue to be influenced by the ongoing trade wars, liquidation of positions, as well as US inflation data and Fed decisions. "All this will support the appetite for the dollar and sap demand for crypto assets. Until the market finds solid footing, bitcoin will remain under pressure. There is little reason to expect a rebound at this point. But if the global risks — inflation, recession, escalation of conflicts — increase, the crypto market is in for a prolonged ‘crypto winter’," the company believes.
Whitebird echoed this uncertainty, suggesting bitcoin could approach $70,000 in the coming weeks if market pressure continues. "However, if the macroeconomic situation improves (for example, employment or inflation data), we can expect a return to $80,000-85,000. Nevertheless, market participants should remain vigilant and closely monitor the most important indicators, such as the activity of institutional investors and the Fed's decisions," the company concluded.