Market Turmoil Returns: Bitcoin Crashes to $82K as Broader Crypto Sentiment Sours

Crypto Markets Hit by $300M Liquidations as Traders Brace for April Shake-Up

Cryptocurrency markets faced another wave of turbulence Friday, with over $300 million in leveraged long positions liquidated as investors reacted to a confluence of economic red flags and looming policy shifts.

Bitcoin (BTC) shed nearly 3% over the past 24 hours, while top altcoins like XRP, Binance Coin (BNB), and Solana (SOL) dropped between 4% and 5%. The CoinDesk 20 Index, a benchmark for broader market performance, declined 3.3%, erasing much of the week’s prior gains.

Market data from CoinGlass shows that $38.8 million in short positions were also liquidated, indicating that the volatility caught both bulls and bears off guard.

The sharp move comes as traders brace for the rollout of new U.S. tariffs on April 2, introduced by President Donald Trump in a bid to counter foreign trade practices. The tariffs have amplified risk aversion across financial markets, particularly after core PCE inflation — the Federal Reserve’s preferred gauge — came in hotter than expected.

Adding to the caution was another disappointing read on U.S. consumer sentiment this week. The future expectations index, a key forward-looking measure, plunged to a 12-year low — often a signal that recessionary pressures are building.

With risk appetite drying up, traders are moving into safer assets. Stablecoins backed by gold, including PAX Gold (PAXG) and Tether Gold (XAUT), outperformed the broader market. Both are trading above $3,100 and have gained 0.7% in the last 24 hours — up over 18% year-to-date. In comparison, BTC is down 12.5%, and the CD20 index is down a steep 28% in the same period.

The message from the market is clear: capital is rotating defensively. With rising inflation, trade uncertainty, and softening economic data, crypto investors may be in for a choppy Q2 unless macro conditions begin to stabilize.

About The Author

ctleditor

See author's posts