Bitcoin and Ethereum prices dropped sharply following rising tensions between the U.S. and China. Bitcoin dropped to around $76,550 on April 9, 2025, down 4.1% in 24 hours. Ethereum dropped 8.3%. Political agendas and sentiment have driven liquidations of over $426 million in the crypto space.
Price Trends and Market Impact
Bitcoin fell steeply mid-trade war turmoil, beneath the psychological threshold of $75,000. Today, it saw a sharp drop of close to 30% from the recent high of over $109,000. Exogenous stress via foreign policy changes has been one of the main causes of this weakening. U.S. President Donald Trump recently signed a 104% tariff hike on Chinese imports into law, putting yet another strain on the U.S. Dollar and impacting global financial markets.
Weakening of Ethereum Despite Stronger Market Trends
Ethereum, the second-largest market-capitalization market-value cryptocurrency, declined even further, to about $1,435.43. It is a steep drop typical of market-wide panic. Ethereum is still at its March low and still about 70% lower than its all-time high of $4,891.70 in November 2021.
Bitcoin and Ethereum price action is just a small part of a broader altcoin trend. Dogecoin dropped 16.3%, and Solana and Cardano dropped 18% and 23.7%, respectively, for the week.
Global Market Influences and Liquidations
It precedes the sell-off of the cryptocurrency with losses in traditional equity markets. The Japan Nikkei 225 index had fallen by 2.6%, and that of the S&P 500 by 1.5%. The market-wide liquidations across the crypto market had reached $426 million, according to CoinGlass statistics. Such a gigantic figure indicates the severity of the panic and loss of investor confidence as they grapple with mounting tensions in the trade war.
The recent volatility also occurs in the context of a broader economic environment of rising interest rates and a government debt crisis. The yield on the 10-year Treasury note went up from about 4.2% to 4.4%, indicating greater investor concern at inflation and the health of the economy.
