By Chris Hollingworth 
Bitcoin and US stock markets experienced significant sell-offs following US President Donald Trump’s announcement of reciprocal tariffs on several countries. On April 3, the S&P 500 plunged by 4.2% at market open, marking its most substantial single-day decline since June 2020. The Dow Jones Industrial Average also saw a decline of 3.41%, dropping from 42,225.32 to 40,785.41, while the Nasdaq Composite fell by 5.23%. Collectively, US stocks lost $1.6 trillion in value at the market open.
Simultaneously, Bitcoin’s value dropped by 8%, but there is some optimism as bulls appear to be defending the critical $80,000 support level. These sharp declines are primarily attributed to the uncertainty surrounding the new tariffs, intensifying investor concerns about a looming recession.
Data from CoinGecko indicates that the total crypto market experienced a 6.8% decline over the past 24 hours, with little prospect for an immediate relief rally.
In the last 24 hours, over 200,000 traders were liquidated, totaling more than $573.4 million in losses, according to CoinGlass. The largest liquidation was seen on Binance, where an ETH/USDT position worth $11.97 million was force closed.
Bitcoin’s open interest has dropped below $50 billion, reducing overall market leverage. Joao Wedson, CEO of Alphractal, noted that liquidation heatmaps show substantial leverage around the $80,000 mark, increasing the risk of a potential drop to $64K-$65K if Bitcoin breaches this level with significant trading volume.
It is essential to note that this article provides information and analysis and does not offer investment advice or recommendations. All investment decisions involve inherent risks, and readers are advised to conduct their research before making any financial decisions.
