The cryptocurrency market has seen a broad decline today. Market capitalization has shrunk by over 2% this week, with daily losses accelerating and major coins slipping noticeably. But the price action is only part of the story. Behind the numbers lies growing investor anxiety about the next phase of the U.S. trade war.
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Cryptocurrencies In Red
All major cryptocurrencies posted losses today. Bitcoin fell by 2.7% and is testing the $85,000 level. Ethereum dropped below $2,000 again with a daily loss of nearly 6%. XRP, Solana, Dogecoin, and Cardano have all lost over 5%.
Some of the worst performers include POL (formerly MATIC), Immutable X (IMX), and JasmyCoin – each down more than 10%. Gains were limited to only a few outliers. Cronos, Toncoin, and FORM saw modest upticks, but the market-wide pressure is hard to ignore.
Despite today’s sell-off, many top 100 tokens are still up for the week. But the weekly gains are small and losing momentum fast.
Macroeconomic Uncertainty Returns
What triggered this latest drop isn’t a blockchain bug or a liquidation cascade. It’s policy. The market is reacting to the upcoming tariffs announced by President Trump. With “Liberation Day” set for April 2, investors are bracing for a new wave of duties on cars, aluminum, semiconductors, and much more.
U.S. stock indexes are down again today. Gold, a traditional safe haven, hit a new all-time high above $3,080. These aren’t random movements – they signal a shift in positioning. Crypto is caught in the middle. It’s still considered a risk asset by most institutions, and right now, investors don’t want to hold extra risk heading into a potentially chaotic April.
Markers In Fear
The Fear and Greed Index climbed out of extreme fear last week. But that brief optimism is gone. Sentiment has slipped again, with today’s reading at 44. That’s still above the panic levels from earlier this month – but not by much. And for over a month now, we haven’t seen a reading above 50 – both in crypto and the U.S. Stocks versions of index.
Read more: How To Use Crypto Fear and Greed Index To Your Advantage?
All Eyes on April 2
April 2 is being branded by Trump as “Liberation Day,” when sweeping tariffs will begin. Some will hit foreign-made cars, others will target imports tied to national security concerns. In theory, the approach is about fairness and reciprocity. In practice, a lot of analysts worry that it’s an administrative and economic mess waiting to unfold. Port officials are warning of backlogs. The Fed is signaling “zero visibility” on inflation forecasts. And investors are pricing in the chaos ahead.
That’s why crypto is falling now – not because of anything wrong with the space itself, but because investors don’t want to get caught off guard. Predictions based on patterns and indicators won’t help much this time. The pressure is coming from outside the charts.
Until there’s more clarity, expect caution to dominate. Volatility will remain high. And recovery, if it comes, will depend on what April 2 actually delivers – not what the technicals suggest.
