Following the announcement of President Trump’s price, which has shaken the markets around the world, the cryptography market has resumed in a state of “extreme fear”, reflecting a sharp drop in investor confidence. The Fear and Greed index, a key measure of the feeling of the market, fell from 19 points to 25 Tuesday, its lowest level in recent months.
This sudden drop in feeling followed by new radical rates by President Donald Trump revealed on April 2, nicknamed the plan of the “Liberation Day”. Aggressive trade measures, which target the main global partners, have aroused fears of economic instability, moving investors from more risky assets such as cryptocurrencies.
The new policy adds a tariff of 10%to all imports, China being the most affected at 54%, followed by Vietnam (46%), Taiwan (32%), India (26%), Japan (24%) and the EU (20%). Canada and Mexico are temporarily exempt, but that could change if the current prices are removed.
Shares decrease worldwide, the liquidation reaches $ 500 million
US stock contracts have dropped more than 1,000 points. The crypto followed suit, the overall market capitalization of 4% to 2.7 billions of dollars. Bitcoin has briefly increased to $ 88,500 but fell to $ 83,073, a drop of 2%. Ethereum fell 4% to $ 1,816, and Solana dropped by more than 5% to $ 119.
The markets across Asia have plunged, the Nikkei in Japan dropped by almost 3% and Hong Kong Hang Seng down 1.5%. Gold increased to a record of $ 3,167.57 per ounce before retreating. American term contracts also indicate a difficult start, the S&P 500 should drop by 3% and the DOW 2.4% lower.
In addition, $ 514 million in cryptographic liquidations occurred in 24 hours, mainly long positions. The index of the CMC Altcoin season reached 14/100, showing the domination of Bitcoin, while the index of fear and greed fell to 25, signaling an extreme fear. Investors are now traveling to Bitcoin, avoiding more risky altcoins in the middle of uncertainty.
Arthur Hayes, co-founder of Bitmex, recently shared that the market does not react well to the “Liberation Day”. He noted that Bitcoin’s ability to maintain a price over $ 76,500 until April 15, coinciding with the American tax day, would be a bull sign. He warned investors to remain vigilant in the middle of current market fluctuations.
The American recession is looming?
In addition, the fears of an American recession increase after the price plan of President Trump, with prediction platforms like Polymarket showing increased concerns concerning economic impact.
However, some experts believe that prices may have a short -term impact, as they can lead to interest rate reductions in the federal reserve. Joseph Wang de Fedguy.com explained that although prices can increase inflation, this effect is temporary and can be compensated by currency changes. He noted that damage to the feeling of the company could be durable, resulting in potential loss of jobs, which the Fed aims to prevent.
The need for new catalysts
Bitcoin is now struggling to maintain an upward dynamic, experts believe that Bitcoin needs a new catalyst to rekindle the interests of investors and have prices increase. These events highlight how geopolitical events can quickly have an impact on digital asset markets, leading to increased volatility on the markets.
