The value of Bitcoin fell to around $81,000 on April 3, 2025, following the aggressive reaction of investors to President Donald Trump’s announcement of fresh tariffs. The steep fall indicates increased fear within the crypto world, eliminating around $140 billion in total value of cryptocurrencies in a matter of hours.
Tariff Implications and Market Response
President Trump imposed what he called “Liberation Day” tariffs on various nations, including leading economies such as China and the European Union. The tariffs are from 10% on some nations to up to 54% on others, damaging investor confidence severely. This led Bitcoin to a record low of $81,810, showing the impact that can be brought about by geopolitical tensions on markets.
Also, the number of 19,000 short-term traders of Bitcoin liquidated a collective total of 18,930 Bitcoins in an immediate reaction to Trump’s announcements of tariffs. According to reports by crypto expert Ali Martinez, the huge selling included positions amassed for different times, with investors who had controlled their shares from six months up to one year doing the biggest liquidations.
Short-Term Trading Dynamics
Observations indicated that short-term investors accounted for huge proportions of these sales. Specifically, one to three-month holders sold 3,113 BTC, and three to six-month holders sold 2,737 BTC. However, older positions were more active, with 3,983 BTC sold by six-month to one-year holders, and a still higher 9,097 BTC sold by holders for one to one and a half years.
This changing momentum indicates that investors are quickly shifting their strategy to counterbalance risk in the face of uncertain economic conditions.
Bearish Shift in Market Sentiment
The sentiment in the market turned bearish as long positions declined sharply from a near-even ratio of 50.14% to 49.86% to the majority of 55.32% in favour of shorts. Bitcoin was trading at approximately $81,715 at the time of this report, down a significant 5.8% on the day. The downside is reason to worry about more weakening without any apparent trigger for a turnaround.
Investors and analysts are also warned to tread carefully, keeping in mind that even vocal crypto supporters such as Robert Kiyosaki start shifting their focus to safer ground in the shape of commodities during current uncertainty.
