- The U.S. China trade tensions along with the rising tariff concerns caused Bitcoin and Ethereum to decrease in value.
- The market decline resulted in more than $350 million worth of cryptocurrency liquidations.
The U.S.-China trade tensions triggered a rapid market drop which caused Bitcoin to reach $78,699 and Ethereum to fall to $1,485 on April 10, 2025. The market value of Bitcoin decreased to $78,699 during its daily low period and Ethereum dropped to $1,485 and lost all its previous week’s gains. The cryptocurrency market demonstrates sensitivity to large-scale economic events because traders panicked about rising trade barriers and asset disposals during the sell-off period.
The cryptocurrency market displayed weakening bullish strength when Bitcoin fell beneath its 50-day moving average which stood at $85,785. The potential resistance point stands at $81,000 while the support level exists near $77,500.
The price of Ethereum broke down below its 200-day average at $2,820 which the market last experienced in 2023. The price region at $1,450 represents a crucial support level which could decide whether market conditions continue to decline.
The cryptocurrency market showed high volatility through its trading volume statistics as Bitcoin reached $50 billion in 24-hour activity while Ethereum surpassed $22 billion daily volume which exceeded monthly figures.
China US Tariffs Spark Crypto Slump
Market sentiment shifted to risk avoidance when the United States hinted at tariffs for Chinese products including advanced technology and clean-energy products. The market-wide sell-off primarily affected cryptocurrencies because investors preferred to protect their assets by purchasing bonds and gold.
The price of Bitcoin declined by 3.5% to $79,697 during this period as Ethereum fell 8.7% to $1,523 because Bitcoin maintained a lower volatility rate yet Ethereum faced exposure to decentralized finance (DeFi) protocols. Traditional financial markets and tech stocks together with commodities experienced similar price drops during this period.
Bitcoin experienced more than $150 million in long position liquidations and Ethereum exceeded $200 million in liquidations within 24 hours according to derivatives data following the tariff announcement. Traders sold their leveraged crypto bets because of the upcoming network upgrades.
Price swings become more pronounced through liquidations since traders must sell their assets to meet margin requirements which starts an ongoing downward price effect. Both Bitcoin dropped past $79,000 while Ethereum failed to hold above $1,500 due to this market mechanism.
Market Sentiment and Long-Term Implications
Market dynamics between traditional and cryptocurrency markets remain connected because the sell-off occurred. The CoinDesk analysts stated that cryptocurrency has transitioned from being an individual asset class to adopting market trends of traditional financial instruments. Blockchain fundamentals share an equal influence with Fed policy and inflation and tariffs on cryptocurrency pricing during short-term periods.
The price decline presents an opportunity for investors to make acquisitions according to certain market analysts. Strategic analysts at CryptoCompare claim that major market downturns generate purchasing opportunities for investors who remain committed to the long term. The long-term demand for Bitcoin exists because of its limited supply while Ethereum enables Web3 functionality.
The pricing of Bitcoin’s supply shock from the upcoming 2024 halving event depends on institutional adoption while ETF inflows act as the main drivers for its future trajectory. The compatibility between Dencun along with ongoing scalability enhancements and upcoming Upgrade Cycle from Ethereum may help boost developer engagement and DeFi use.
The path of cryptocurrency markets depends heavily on regulatory clarity that especially affects the United States and European Union markets. Better regulatory control over stablecoins and mining operations would create new difficulties yet favorable regulations could lead to increased bullish market sentiment.
Cryptocurrencies remain vulnerable to geopolitical factors despite their decentralized philosophy because the April 10 market crash demonstrated this fact. A rebound for Bitcoin and Ethereum requires markets to achieve a clear understanding of tariffs along with interest rate policies and regulatory guidelines.
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