Bitcoin and Ether Fall as US Tariff Fears Resurface

Bitcoin and Ether Hit New Lows Amid Global Market Volatility

Bitcoin and Ether– Cryptocurrency prices plunged in early Monday trading, April 7th, reflecting renewed investor caution in global markets as U.S. tariff concerns resurfaced.

The sharp decline in cryptocurrency prices, led by Bitcoin and Ether, comes as geopolitical and macroeconomic pressures mount. U.S. President Donald Trump reaffirmed his commitment to imposing extensive tariffs over the weekend, which sparked negative reactions from investors. U.S. equity futures also declined, signaling broader market concerns.

According to Charlie Sherry, Head of Finance at BTC Markets, cryptocurrency markets often react first to shifts in global sentiment since they operate 24/7. Bitcoin dropped nearly 7%, falling to around $76,900, while Ether touched a low of $1,540—its lowest intraday point since October 2023. Though both assets regained some losses, they remained under pressure.

Options and Liquidation Data Highlight Market Anxiety

The options and derivatives markets echoed the risk aversion in the crypto space. In the past 24 hours, nearly $758 million in bullish crypto positions were liquidated, the highest amount in six weeks, according to Coinglass data. This suggests significant losses for leveraged long traders.

Bloomberg also reported a strong preference for puts (downside protection) in the options market, particularly for Bitcoin options with a strike price of $70,000 on Deribit. FalconX’s Sean McNulty confirmed that the demand for hedging against further declines has increased substantially, signaling heightened market anxiety.

Despite hopes for crypto to decouple from traditional markets, recent price action shows that digital assets remain strongly correlated with traditional risk assets like the Nasdaq 100. Julia Zhou, COO of Caladan, emphasized that digital assets continue to serve as leading indicators for broader market movements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.