In a sharp fall, the cryptocurrency market has shed more than $130 billion of its market capitalization. Bitcoin (BTC) has fallen below $82,000, raising concerns for investors. This is despite enormous tariff uncertainties from the United States and changing market moods.
Effects of Tariff Uncertainties
Recent news reveals that the planned tariffs, which are set to come into effect on April 2, 2025, will affect over $1.5 trillion worth of U.S. imports. According to the Kobeissi Letter, this has created a great deal of fear among investors, which has driven the bearishness in cryptocurrencies.
Other large coins, such as Ethereum (ETH), Ripple (XRP), and Solana (SOL), have not been left behind either. Ethereum is now at approximately $1,800, and Ripple fluctuates at approximately $2. The prices show the increasing fear of inflation and its possible impact on movement in markets.
Market Performance Metrics
To put things into perspective, Bitcoin’s dominance in the market increases even as prices decline, which means that it is continuing to consolidate and not exit the market. According to statistics provided by CoinGecko, Bitcoin declined by 5.9%, Ethereum declined by 10.9%, and XRP declined by 15% last week.
The recent ETF outflows are an indicator of bearish sentiment among investors. They fear the rising inflation rates and subsequent economic data releases, such as the EU Consumer Price Index (CPI) and U.S. non-farm payrolls, to be released later this week. Such products are likely to introduce volatility into the markets.
Future Outlook for Bitcoin and the Crypto Market
Even as prices dip, some are of the opinion that there is still scope for the price to recover in the near term. More long-term holders of Bitcoin are picking up again, expecting strong buying pressure. However, foreign events like tariffs and inflation place the market’s status in doubt.
Technical analysis shows that the market will most likely correct following quarterly trading ends, despite prevailing bearish conditions. The hopes of analysts remain high for recovery in the upcoming quarter, as long as external market conditions stabilize.
