The ongoing global tariff war has sparked a sharp downturn across the crypto market, with Bitcoin, Ethereum, Solana and other major cryptocurrencies posting double-digit losses. Analysts remain divided, while some are calling it panic selling, others see a major accumulation opportunity.
Background
- The crypto market is reeling from a significant correction, closely mirroring the recent weakness in global equities tied to escalating tariff tensions.
- Bitcoin, the largest cryptocurrency by market capitalization, has fallen over 10% in the past two weeks, now trading below $75,000—its lowest level since November 2023.
- Ethereum, which has underperformed throughout 2024, saw a steeper decline, crashing 17.9% in just 24 hours and slipping below $1,500 for the first time since March 2023. This places ETH roughly 70% below its all-time high of over $4,000 reached in 2021.
- The pain isn’t limited to BTC and ETH. Solana has also suffered a sharp decline, dropping by 17% in a day to below $100, retreating 66.8% from its January 2025 peak of $296.
- The cumulative sell-off has shaved 11.6% off the global crypto market cap.
Why Should You Pay Attention?
- According to data from CoinGlass, roughly 452,897 traders were liquidated in the past 24 hours, totaling $1.37 billion in losses.
- Bitcoin and Ethereum accounted for the lion’s share, with $459.41 million and $403.88 million in liquidations, respectively.
- The scale of these events has prompted renewed volatility in the crypto space, raising critical questions about investor sentiment, institutional exposure, and long-term value accumulation.
Who Said What?
Crypto (twitter) X has lit up with varying takes on the unfolding crash:
- Pseudonymous trader @aixtn described the market as being in “sell now, think later” mode, stating:
“BTC and ETH both tumbling alongside Asian stocks. Analysts saying this is panic selling, not fundamental weakness.”
- Trader Merlijn the Trader struck an optimistic tone, posting:
- On Ethereum, he added:
- Still, not everyone is convinced. Ignas, co-founder of Pink Brains, drew a cautionary comparison:
“My biggest worry for ETH is that it’s the new ATOM. Widely adopted tech, but little value accrual.”
• X User Stock Holder pointed to macro risk, noting:
“The US government is effectively insolvent without rising markets. Either the Fed buys everything or counter-party risk is all that matters. Bitcoin wins in both scenarios.”
Zooming Out
- Despite the turmoil, Bitcoin still ranks as the 13th most valuable currency globally, even after a 29.7% decline from its all-time high.
- While the tariff-induced selloff has rattled markets, long-term bulls argue this correction could mirror prior accumulation zones that preceded major rallies.
- Whether this is another temporary panic or the start of a deeper trend remains to be seen. However, one obvious thing is that all eyes are back on crypto’s resilience in the face of global economic stress.
