Leading Cryptocurrencies Pulled Back Wednesday Evening After President Donald Trump's “Liberation Day” Tariff Shock

Leading cryptocurrencies encountered a setback Wednesday evening following President Donald Trump’s “Liberation Day” tariff shock.

What Happened: After breaching $88,000, Bitcoin (CRYPTO: BTC) sharply reversed course, plunging to a low of $82,182.32.

At the same time, Ethereum (CRYPTO: ETH) saw a similar fate, plummeting to $1,780 from $1,950 earlier in the day.

Over $515 million was liquidated from the market in the last 24 hours, with long liquidations taking the brunt at $290 million.

Bitcoin’s Open Interest shrank by 6% in the last 24 hours, while funds locked in Ethereum’s unsettled futures contracts dipped by 2.21%.

However, the Long/Short Ratio saw an increase over the last 24 hours, indicating a rise in traders placing bullish bets on the leading cryptocurrency.

The market sentiment took a downturn and slid into “Extreme Fear,” according to the Crypto Fear and Greed Index. It now stands at 10.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stands at $2.67 trillion, following a decline of 2.57% in the last 24 hours.

Stock futures tumbled heavily on Wednesday after President Donald Trump announced the imposition of new tariffs on a wide range of goods from China, Mexico, Canada, Spain, France, Germany, Italy, Japan, Korea, Vietnam, Turkey, India, and Switzerland.

The Dow Jones Industrial Average Futures sank 823 points, or 1.94%, and traded lower by 798 at 39,865. S&P 500 Index Futures fell 2.86%, while Nasdaq 100 Futures plunged 3.62%.

The broad-based sell-off unfolded as the scope and scale of the new reciprocal tariff structure exceeded Wall Street’s worst-case expectations.

Earlier in the day, U.S. President Donald Trump said in a series of posts on X, formerly known as Twitter, that he would be imposing a new tariff structure on goods imported into the U.S. The new levies would be 50% of what the trading partners charge the U.S.

On Monday, President Trump said he would be announcing a "major statement" on tariffs, adding that the administration was preparing a regulation to impose tariffs on goods in an effort to "equalize" the rates paid by U.S. importers with the tariffs charged by other countries on U.S. products.

Earlier this month, the Biden administration announced plans to impose tariffs on products from Vietnam in an attempt to deter the Southeast Asian nation’s companies from routing goods through its territory to circumvent U.S. tariffs on Chinese goods.

The new tariffs are part of President Trump’s broader agenda to renegotiate trade deals that he views as unfair to the U.S. and to reduce the trade deficit.

The president has previously threatened to impose tariffs on goods from China, Mexico, and Canada, and he has already imposed tariffs on steel and aluminum imports from several countries.

The president’s announcement comes as the stock market has been struggling in recent weeks amid concerns about the trade war with China, rising interest rates, and the global economic outlook.

The Dow Jones Industrial Average has fallen more than 7% from its all-time high, which was reached in February. The S&P 500 Index has slid more than 8% from its all-time high, which was reached in January.

The new tariffs are sure to further escalate the trade tensions between the U.S. and its trading partners. They are also likely to have a negative impact on the U.S. economy, as they will increase the prices of consumer goods and make it more difficult for U.S. companies to export their products.

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Analyst Notes: Popular blockchain analytics firm CryptoQuant highlighted $65,000 – $71,000 as a strong support zone for Bitcoin.

CryptoQuant defined $65,000 as the True Market Mean Price and $71,000 as the Active Realized Price. “Buying Bitcoin within this range could potentially lead to substantial gains,” it observed.

It added, “Decrease in selling pressure by 1-3 month holders. These holders appear to show reduced activity in the market after taking profits from their short-term trades.”

Popular cryptocurrency trader Rekt Capital pointed out that a new altseason would arrive when Bitcoin’s dominance hits 71%.

"Bitcoin dominance is currently only 8% away from 71%. Another similar growth spurt would see BTC.D reach that resistance comfortably," Rekt Capital added.

#BTC Dominance