Bitcoin (BTC) retreated toward $75,000 early Wednesday as global markets digested the impact of sweeping new U.S. tariffs, with analysts warning of further downside if trade tensions continue to escalate.
The Trump administration’s 104% tariff hike on Chinese imports — now officially in effect — and additional duties on goods from over 60 countries have triggered sharp reactions across asset classes, from equities to crypto.
The crypto market reversed Tuesday’s gains, with BTC sliding from near $80,000 to a low of $75,100 before stabilizing just below $78,000. Ether (ETH) led major token declines, falling 10% and dipping below $1,500. XRP, SOL, ADA, DOGE, and BNB were down between 5% and 7%.
Broad market cap for digital assets dropped 6% on the day, and nearly 15% over the past week. Smaller tokens bore the brunt of the selloff — BERA fell 20%, while PEPE, BONK, and FLOKI tumbled by over 9%.
Equity markets mirrored crypto’s decline. The Nasdaq and S&P 500 surrendered strong morning gains to close lower, while crypto-adjacent stocks slumped. Bitdeer (BTDR) sank 8.7%, MicroStrategy (MSTR) dropped 5.3%, and Coinbase (COIN) slid 2.3%. DeFi Technologies (DEFTF), however, surged more than 10%, amid speculation of a potential U.S. listing.
Meanwhile, the bond market experienced historic volatility. The 30-year Treasury yield surged 56 basis points since Friday — its steepest three-day rise since 1982 — raising fears of forced liquidations.
“Moves like these are rarely orderly,” said Jim Bianco of Bianco Research on X. “This kind of spike usually points to something breaking, not routine asset reallocation.”
Short-Term Pain, Long-Term Potential?
Market participants now eye $70,000 as a possible next support level for BTC, particularly if geopolitical and macroeconomic uncertainty persists.
“The broader risk-off tone is dragging everything lower, but this environment also offers long-term entry points,” said Ryan Lee, Chief Analyst at Bitget. “Bitcoin’s fundamentals are unchanged — rising institutional adoption, a strong halving narrative, and dominance over 60% show depth in this market.”
Lee expects any bottoming in the $70K–$75K range to present a solid buying opportunity, especially for long-term investors positioning for a potential rally in late 2025. His year-end target remains $95K–$100K if macro conditions begin to stabilize.
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