By Chris Hollingworth 
Following US President Donald Trump’s announcement of reciprocal tariffs on multiple countries, Bitcoin (BTC) and US stock markets experienced significant sell-offs. The S&P 500 plummeted by 4.2% at market open on April 3, marking its most substantial single-day decline since June 2020. The Dow Jones Industrial Average also saw a notable drop of 3.41%, falling from 42,225.32 to 40,785.41, while the Nasdaq Composite declined by 5.23%. The collective value erased from the US stock market at the opening bell amounted to $1.6 trillion.
Bitcoin’s value also took a hit, dropping by 8%. However, there is optimism as bulls appear to be defending the $80,000 support level. These sharp declines are largely attributed to the uncertainty surrounding the new tariffs, heightening investor concerns about a potential recession.
Data from CoinGecko reveals that the overall crypto market has decreased by 6.8% over the past 24 hours, with prospects for a relief rally in the short term seeming unlikely.
Additionally, crypto liquidations have surged to $573 million within the last day, resulting in over 200,000 traders being liquidated. The largest liquidation occurred on Binance, involving an ETH/USDT position valued at $11.97 million.
Bitcoin’s open interest has dipped below $50 billion, leading to reduced market leverage. Joao Wedson, the CEO of Alphractal, pointed out that liquidation heatmaps indicate significant leverage around the $80,000 mark, raising the possibility of a potential drop to the $64K-$65K range if Bitcoin breaches this level with substantial trading volume.
It is essential to note that this article does not offer any investment advice or recommendations. All investment and trading decisions carry inherent risks, and readers are encouraged to conduct their research before making any financial choices.
