The crypto market has plunged again right into a state of “Excessive Worry” following a steep drop in investor sentiment.
The extensively watched Crypto Worry and Greed Index fell 19 factors to 25 on Tuesday, marking one in all its lowest readings in current months.
The sharp decline in sentiment got here within the wake of former U.S. President Donald Trump’s April 2 announcement of sweeping new tariffs, branded the “Liberation Day” plan.
Trump’s Tariff Plan Imposes 10% Baseline, Hits Choose Nations Tougher
The coverage introduces a ten% baseline tariff on all imports and consists of considerably increased charges for chosen international locations.
China faces the steepest hike, with a mixed 54% responsibility, whereas Vietnam (46%), Taiwan (32%), India (26%), Japan (24%), and the European Union (20%) additionally face sharp will increase.
Canada and Mexico have been exempted for now, although that might change if present tariffs are withdrawn.
Markets reacted swiftly and negatively. U.S. inventory futures plummeted, with the Dow dropping over 1,000 factors, whereas the S&P 500 and Nasdaq additionally suffered main losses.
The crypto sector mirrored the downturn. The general crypto market capitalization fell by 4% to $2.7 trillion.
Bitcoin initially rallied to $88,500 throughout Trump’s speech however rapidly reversed course, falling to $83,073—a 2% loss inside 24 hours.
Ethereum adopted with a 4% decline to $1,816, whereas Solana dropped greater than 5% to $119.
The market rout triggered $514 million in liquidations over a 24-hour span, with $290 million coming from lengthy positions, in response to knowledge from Coinglass.
Notably, the CMC Altcoin Season Index chart reveals that the present rating is 14 out of 100, inserting the market firmly in Bitcoin Season quite than Altcoin Season.
This rating signifies that solely a small variety of altcoins have outperformed Bitcoin over the past 90 days.
Traditionally, when this index is under 25, it means that Bitcoin is dominating the market by way of returns, whereas altcoins are underperforming.
The chart additionally reveals a gradual decline within the Altcoin Season Index since January, with the present studying close to its 90-day low.
Within the broader context of the Worry and Greed Index, which additionally sits at a low 24/100 (Excessive Worry), the present Altcoin Season Index additional displays market warning.
Traders look like retreating to perceived safer belongings like Bitcoin throughout unsure instances, avoiding riskier altcoins.
Arthur Hayes: Bitcoin Should Maintain $76.5K Till Tax Day to Keep Bullish
Arthur Hayes, co-founder of crypto change BitMEX, addressed the volatility on X, suggesting that Bitcoin holding above $76,500 till April 15—U.S. tax day—can be a bullish signal.
He cautioned merchants to not “get chopped up” by the present turbulence.
Mrkt no likey "Liberation Day", if $BTC can maintain $76.5k btw now and US tax day Apr 15, then we’re out of the woods. Don't get chopped up!
— Arthur Hayes (@CryptoHayes) April 2, 2025
Final month, 10X Analysis warned that Bitcoin may revisit $73,000.
The agency famous retail buyers flocked to meme cash throughout Bitcoin’s post-election rally in January, seemingly marking a market prime. They steered Bitcoin now wants a brand new catalyst to maintain upward momentum.
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