Bitcoin Crashes Below $75,000 As Asian Stock Markets Bleed

Bitcoin sharply fell on Wednesday as China raised tariffs on all US imports from 34% to 84%. Bitcoin price was down nearly 5% on the 24-hour chart at press time. The development comes as global financial markets are sinking under pressure from the US imposing a 104% tariff on Chinese imports. 

The sell-off coincided with mounting fears that escalating trade tensions between the world’s two largest economies could derail global economic recovery.

Bitcoin Crashes as Stock Market Bleeds Worldwide

In Asia, Japan’s Nikkei 225 plummeted nearly 4% at the open. Meanwhile, markets in South Korea, Australia, and New Zealand also posted significant declines. 

Australian stocks opened 2% lower, wiping out gains from the previous session amid waning hopes for a US-China trade resolution.

The S&P 500 plunged 1.6%, reversing an earlier 4.1% gain and pushing the index nearly 19% below its February peak. The Dow Jones Industrial Average slipped 0.8%, while the tech-heavy Nasdaq dropped 2.1%. The price of Bitcoin also struggles due to its heavy correlation with the Nasdaq.

The sharp crypto correction triggered over $400 million in daily liquidations, led by leveraged long positions. 

“In the past 24 hours, 140,035 traders were liquidated, the total liquidations comes in at $447.17 million,” Coinglass stated.

Notably, Bitcoin’s long-short ratio flipped for the first time in weeks, with short positions now accounting for 55% of open interest—a clear sign of bearish sentiment overtaking the market. Investors are quickly de-risking across asset classes, bracing for further volatility as the trade dispute escalates. 

Trump’s additional 104% tariffs on China and a lack of diplomatic progress have intensified uncertainty, prompting traders to seek liquidity and shift to defensive strategies. Now, China has announced a retaliatory 84% tariff on all US imports effective from April 10.

“BTC is consolidating around the $75,000 level, though this could unravel if equities face another sharp leg lower. ETH continues to underperform, drifting toward the $1,400 levels last seen in early 2023,” QCP analysts said.

However, some view this dip as an opportunity to accumulate Bitcoin.

“Bitcoin has already survived Mt. Gox, the Covid crash, the China mining ban, and the crypto winter. Now you’re panicking over tariffs? Just another opportunity you’ll wish you took,” Quinten Francois stated on X.

Nonetheless, with Bitcoin often seen as a barometer of macro risk appetite, its decline underscores the market’s growing unease. This uneasiness is also reflected in the crypto fear and greed index, which currently stands in the extreme fear territory.