The crypto market and Bitcoin (BTC) have experienced the largest drop of the year over the last 24 hours. This drop, fueled by recession fears as the Trump-induced Trade War heats up, has resulted in massive liquidations across the crypto market totaling up to $1.38 billion.
Amid the recent crash in the crypto market as well as the global stock market, fears of the 1987 market crash (Black Monday), have resurfaced. The market is extremely worried about what happens next if the geopolitical tensions prevail.
Crypto Market Tanks 9% Over the Last 24 Hours
According to data on TradingView, the Total Crypto Market Cap (TOTAL) has lost over $254 billion over the last 24 hours. This drop marks a 9.65% bringing the TOTAL to the $2.38 Trillion level. The drop in the crypto market can be highly attributed to Donald Trump’s reciprocal tariffs which have since faced retaliatory tariffs from other countries.
Particularly, China raised its tariffs to the US to 34% while the European Union (EU) is set to impose more taxes on U.S imports. On the other hand, Canada announced 25% tariffs on $155 billion-worth of American goods. If more countries continue to retaliate, the TOTAL could dip further.
Currently, the Total Crypto Market Cap has a short-term support at $2.31 Trillion. A drop below this level could lead to worsened bearish sentiment with the next support at $2.12 Trillion. However, if the TOTAL rebounds above the $2.52 Trillion resistance and manages to turn it into support, it could strengthen the reversal from the downtrend.
Nonetheless, the total crypto market cap faces strong resistance at $2.7 Trillion and $2.93 Trillion. If these levels are breached, it will confirm a bullish momentum pushing the TOTAL towards the $3 level. A recovery of this manner is crucial to restore investors’ confidence!
Bitcoin Price Tanks to $76,000 After Breaching Key Support
Since breaching the support at the $80,000 price level yesterday (April. 6, 2025), Bitcoin has since dropped to $76,000. In fact, the price dropped to slightly above $74,000 before finding support and rebounding to the current level.
As per the BTC/USD daily price chart on TradingView, BTC was trading at $76,718.51 as of the time of writing. This price level marks a 8.10% dip over the last 24 hours. If the market fails to rebound, more bloodbath could be experienced as sellers dominate the market.
Some of the key price levels to watch for Bitcoin include the support at $74,154.29. A breach of this level could mean further drop towards the next support at $70,132.36. Failure to hold this level could mean more price drop with a risk of reaching as below as $55,000 if macro factors hold the market down.
But, if bulls manage to take charge in the current market, the price could rebound. BTC faces resistance at $80,734 and reclaiming this level is vital for upward price movement. The next resistance levels sit at $85,180.27 which if breached could confirm bullish momentum pushing the price above $90,000. However, favorable market conditions have to prevail for this to happen.
Big Week Lies Ahead; Here Are Some Key Events to Watch
This week, there are six significant events that could disrupt the market thereby affecting crypto prices. These events include reciprocal tariffs responses expected today, Fed Meeting Minutes (April 9), March CPI Inflation Data (April 10) as well as Initial Jobless Claims report. Additionally, Friday April 11 will feature March PPI Inflation data and Michigan consumer sentiment report.
Massive Volatility Across the Crypto Market Just Around the Corner
With reciprocal tariff reactions expected today, more retaliation by nations will worsen the trade tensions. This might lead to more price volatility hence making investors lose confidence even more.
The Federal Reserve Meeting Minutes report expected on Wednesday could further shake the crypto market. In the minutes, FED is set to showcase their current position regarding interest rate policies. A hawkish approach from policymakers to strengthen the US dollar value could put downward pressure on Bitcoin and altcoins.
Additionally, market participants should observe the March CPI inflation report scheduled for Thursday. If the report reveals elevated inflation, this may force additional rate hikes to limit liquidity in high-risk assets including crypto. Furthermore, investor sentiment could be shifted if the initial jobless claims data shows strength across the labor market.
The release of February PPI data together with the Michigan Consumer Sentiment report set for Friday this week, will further shape market expectations. Rising producer prices at a substantial level would demonstrate sustained inflation and boost alarm about tighter monetary policy.
Widespread pessimism in the Michigan Consumer Sentiment report suggests that the data will show economic weakness. If this turns out to be the case, it may make traders predict that the Federal Reserve Bank will ease its monetary policy. Such a scenario would however be favorable for the crypto market. But, crypto market participants must keep watch of the events for this week as they are set to affect the market.
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