Bitcoin’s rebound was short-lived.
The world’s largest cryptocurrency dropped to just under $75,000 early Wednesday, trimming a minor overnight recovery, as sweeping new tariffs from former President Trump officially took effect — throwing global markets back into risk-off mode.
Ether (ETH) took the hardest hit among the majors, sliding 10% on the day. XRP, DOGE, BNB, SOL, and ADA weren’t spared either, each falling more than 5%. The total market capitalization of digital assets declined 6%, widening a seven-day rout to nearly 15%.
The damage was worse in the altcoin trenches. Berachain’s BERA plummeted 20%, while meme-heavyweights like PEPE, BONK, and FLOKI sank over 9%, mirroring the collapse in trader sentiment.
The selling frenzy unfolded as the White House confirmed a 104% tariff on Chinese imports would go live at midnight. More than 60 other countries were hit with elevated import duties, signaling a renewed era of protectionism and rising geopolitical tension.
Crypto equities followed suit: Bitdeer (BTDR) dropped 8.7%, MicroStrategy (MSTR) fell 5.3%, and Coinbase (COIN) slipped 2.3%. One standout exception was DeFi Technologies (DEFTF), surging over 10%, amid whispers of a potential U.S. Nasdaq listing.
Wall Street didn’t escape the crossfire. After soaring early, the S&P 500 and Nasdaq turned lower, erasing gains of nearly 4% and closing down 0.5% and 0.7%, respectively.
The bond market also saw violent moves, with the 30-year Treasury yield spiking over 20 basis points to 4.98% — a historic three-day surge of 56 bps not seen since 1982.
“Something has broken tonight in the bond market,” wrote Jim Bianco of Bianco Research. “This is likely a disorderly liquidation. These aren’t the moves of human managers — this looks automated and forced.”
Rising yields reflect falling bond prices and heightened borrowing costs for the U.S. government, adding fuel to fiscal deficit concerns and amplifying investor anxiety.
Short-Term Pain, Long-Term Play?
The question on every crypto investor’s mind: is there more pain ahead?
Ryan Lee, Chief Analyst at Bitget Research, thinks a short-term dip toward $70,000 is on the table if trade pressures worsen — but that doesn’t mean it’s time to panic.
“Volatility like this is nerve-wracking, but for long-term believers, it’s an opportunity,” Lee said. “We may see sub-$75K levels, but buyers with patience and perspective can benefit.”
Lee emphasized that Bitcoin remains resilient compared to altcoins, buoyed by institutional inflows, strong fundamentals, and upcoming catalysts like the halving.
“If macro pressures ease or pro-crypto policy emerges, we’re still targeting a $95K–$100K Bitcoin later in 2025, with total crypto market cap possibly retaking the $3 trillion milestone,” he added.
For now, caution rules the day — but history suggests Bitcoin doesn’t stay down for long.
