Financial Insights That Matter
As markets reel from the escalating trade war sparked by U.S. President Donald Trump‘s sweeping tariffs, crypto analysts and industry leaders are warning that the turbulence may reshape the digital asset landscape—well beyond the current sell-off.
What Happened: More than $800 million in Bitcoin BTC/USD and Ethereum ETH/USD liquidations have occurred in just the past 24 hours, according to data cited by QCP Capitalas Bitcoin briefly dropped below $75,000 and volatility spiked.
QCP noted that implied volatility for BTC jumped above 85v, with Ethereum hitting 130v, as traders scrambled to hedge downside risk.
What Experts Are Saying: The mounting uncertainty is pushing experts to reframe crypto’s role in the broader macroeconomic picture.
Speaking with Benzinga, Rob ChangDirector and Co-founder of Gryphon Digital Mining said what we’re seeing is more a case of delayed reaction or markets pricing in uncertainty with a short-term bullish bias. “Bitcoin remains highly sensitive to macro developments, and any perceived lull can quickly give way to volatility.”
He added that tariffs function as a tax on both consumers and producers, and could pressure Bitcoin further.
“If trade conflict escalates and macro conditions deteriorate, I wouldn’t be surprised to see BTC fall to $50,000 in the next quarter,” he said, pointing out that the sentiment highlights crypto’s lingering correlation with traditional risk assets, despite hopes it could act as a hedge.
Arthur BreitmanCo-founder of Tezosechoed the point, noting that crypto is still behaving like a risk-on asset.
“As fears of a trade-war-induced downturn rise, crypto is largely tracking equity markets lower because investors tend to shed speculative holdings first in uncertain times,” he said.
However, Breitman suggested that over time, unpredictable government policy could “boost the appeal of trust-minimized systems” like Bitcoin and decentralized networks—particularly if confidence in the U.S. dollar erodes.
Adam Bouktilaco-founder of Defactorstruck a more cautionary tone, calling the current moment a “defining stretch” for the industry.
“With tariffs dominating headlines, memecoin mania fading, and DefAI hype outpacing reality, crypto is entering a bumpy ride,” he said.
While the U.S. had been seen as a driver of digital asset adoption, Bouktila argued the vision is yet to fully materialize, leaving markets grasping for clarity.
Andreas Brekkenfounder of SideShift.aioffered a more optimistic view.
Despite the market panic and stock suspensions across Asian exchanges, he said, “I’m still very bullish on BTC,” suggesting diplomatic negotiations could de-escalate tensions quickly.
Also Read: Bitcoin Has Yet To Price In ‘Very Positive Developments,’ Pantera Capital’s Dan Morehead Says
What’s Next: Data analysts at B2BinPay pointed to structural signals in Bitcoin’s chart, warning that its current retracement closely mirrors the early stages of the 2022 bear market.
“Technical indicators hint at a strong bearish movement. The pattern is very similar to May 2022, where BTC lost almost 80% within a year,” they noted.
Still, long-term fundamentals remain intact. “Long-term prospects for crypto remain favorable,” B2BinPay added.
But in the short term, both Ethereum and XRP XRP/USD have broken key support levels, with XRP notably falling 20% despite a dropped lawsuit against Ripple.
Glass nodea blockchain analytics firm, noted that Bitcoin appears to have found support near $74,000, with more than 50,000 BTC clustered at that level, mostly held by long-term investors who have remained inactive since mid-March.
This level may serve as a psychological floor if broader macro pressure persists.
As Trump moves forward with the next round of tariffs set to take effect on April 9, global markets remain on high alert. More than 50 countries have reportedly reached out for trade talks, but confidence is fragile.
“Sometimes you have to take medicine,” Trump said recently, defending the volatility his policies have created.
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© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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