On April 7, 2025, according to BTCC market data, Bitcoin price dropped significantly today, falling to a low of $74,550, currently trading at $75,153, with a 24-hour decline of 4.17%. Ethereum's decline was even more severe, breaking below the $1,500 mark, currently at $1,458, with a 24-hour drop of 7.71%. Meanwhile, the Altcoin market experienced a comprehensive crash.
According to Coinglass data, over 449,000 people were liquidated in the past 24 hours, with a total amount of $1.37 billion. Among these, long position liquidations reached $1.208 billion, accounting for 86%, while short position liquidations were $169 million. Market panic sentiment further intensified.
The total cryptocurrency market capitalization significantly shrank from $26 trillion to $23.8 trillion, a 10% decline. Bitcoin's total market cap fell below $1.5 trillion, currently at $1.49 trillion, with a 24-hour drop of 9.8%; Ethereum's market cap dropped below $180 billion, at $179.4 billion, with a 24-hour decline of 18.2%.
Considering recent macro and market changes, this crypto market downturn may be primarily influenced by the following three factors:
1. US Stock Market Spillover Effect
Recently, US stock performance has remained weak, with the Nasdaq index officially entering bear market territory, leading to lower overall market risk appetite. As a high-risk asset, cryptocurrencies were immediately impacted under the backdrop of global risk-averse sentiment.
2. Global Market Concerns Triggered by US Tariff Increases
On April 2, former US President Trump signed an executive order imposing new tariffs on multiple trading partners. This action reignited global economic recession concerns, causing risk assets to collectively retreat, with the crypto market not being spared.
3. Capital Outflow and High-Leverage Liquidations
The current market is in a high-level sideways stage, lacking new fund inflows, leading to fragile bullish sentiment. Once prices quickly drop, chain liquidation effects are rapidly triggered, exacerbating panic selling and short-term crashes.
Currently, Bitcoin has broken below $75,000, with key support around $74,000. If the price falls below this level, further decline may occur. For Ethereum, continued oscillation below $1,500 requires caution of further weakness. In the short term, investors should focus on the Federal Reserve's policy direction, US economic data, and global geopolitical risk events, which will continue to influence market trends.
