Daily Crypto Signals: Bitcoin Tumbles from $88.5K, XRP Awaits Ripple Effects of New Trump Tariffs
The cryptocurrency market displayed a mixed landscape on April 2nd, 2025, as Bitcoin, Ethereum, XRP, and other altcoins grappled with the ripple effects of newly announced US tariffs and cautious sentiment in derivative markets, while decentralized exchange Curve Finance reported a record-breaking first quarter in trading volume.
The broader market also witnessed significant events, including a stablecoin depegging scare and new ETF proposals, adding layers of complexity to investor sentiment.
Crypto Market Review
Following President Trump’s declaration of broad tariffs, including a 10% baseline on all imports and reciprocal levies on trading partners, Bitcoin dropped drastically from around $88,500 to roughly $83,400, hence creating fresh volatility in the cryptocurrency market.
Notwithstanding this setback, data shows that significant spot market buying drove Bitcoin’s recent surge; short liquidations totaling $69.4 million in a 12-hour period and overall market liquidations of $145 million reflect this trend. The tariff news sparked off an after-hours selloff across risk assets; tech stocks suffered especially as the Nasdaq-oriented QQQ ETF lost almost 4%.
Bitcoin Soars, Then Crashes Amid Tariff Announcement
Bitcoin BTC/USD has had a wild ride, rising momentarily over $88,500 then declining to trade around $83,400, down almost 2% in 24 hours. News that Trump’s “Liberation Day” tariffs were not yet approved gave investors hope and helped to explain some of the rise. The rise fell short, though, in breaking through a significant three-month declining trendline resistance that has regularly turned back past price increases.
Strong spot market buying and the comeback of the Coinbase Pro premium implying institutional interest point to a market structure that seems to be moving from bearish to optimistic. While Strategy (previously MicroStrategy) is continuously building up its position, several companies have declared intentions to raise Bitcoin holdings, like GameStop securing $1.5 billion for possible BTC purchases. These business acquisitions show increasing institutional confidence in Bitcoin as a reserve asset in spite of transient volatility.
Ethereum Posts 44% YTD Losses
Ethereum ETH/USD still having trouble; it dropped 3.3% in 24 hours and trades about $1,800. ETH stays 44% down year-to- date and has failed to recover the crucial $2,000 threshold while the price has increased 6.4% from its March 30 low of $1,768. With futures premium at 4% – below the neutral 5% mark despite increasing support at $1,800, derivatives measures imply professional traders express little confidence in a major comeback.
With the 25% delta skew reading at 7%, showing whales fear more downside, options market data supports risk-averse attitude even more. Some analysts blame Ethereum’s underperformance on the collapsing memecoin market, which has slowed activity across distributed apps. Notwithstanding these difficulties, Ethereum’s fundamentals are still robust; stablecoin holdings reach an all-time high of $124.5 billion and the network continues to be the clear leader with $49 billion in total value locked.
Though both retail and institutional investors today remain wary about Ethereum’s short-term prospects, sentiment might change rapidly given good momentum from the Trump family’s World Liberty Financial investment in ETH and Eric Trump’s vocal backing.
Curve Finance Trading Volumes Touch $35B in Q1 2025
With record-breaking trading volumes of about $35 billion in Q1 2025, Curve Finance (CRV) has shown amazing resilience under trying market conditions. Driven mostly by a boom in transactions from roughly 1.8 million to 5.5 million, which marks a 13% rise over Q1 2024. These remarkable numbers stand in spite of the larger bitcoin market seeing a 20% drop in overall market capitalization during the same period.
Several strategic changes made by the DeFi protocol help it to change with the terrain. Curve replaced the prior model in June 2024 with its stablecoin crvUSD for fee distribution to tokenholders, and in November teamed with Elixir to assist onboard BlackRock’s tokenized money market fund to DeFi. By the end of 2025 Curve intends to have all of its lending markets under one user interface.
Though these encouraging improvements, Curve’s total value locked as of April 2, down from over $2.5 billion at the beginning of the year, is about $1.8 billion. Likewise, the native token CRV of the protocol has witnessed a more than 40% year-to- date drop in market valuation, to roughly $640 million.
What’s Next for the Crypto Market?
Investors evaluating the possible effects of Trump’s tariff measures create great uncertainty in the bitcoin market. Although Bitcoin displayed strength hitting almost $88,500, its inability to sustain such gains exposes ongoing market weakness. With Circle seeking an IPO on the New York Stock Exchange under the symbol “CRCL,” disclosing 2024 sales of $1.67 billion – a 16% year-on-year growth despite a 41.8% drop in net profitability, the stablecoin market is always changing.
Market participants are now closely watching how global markets respond to Trump’s tariff announcement, with particular attention to potential retaliatory measures from major trading partners. For crypto investors, the interplay between traditional financial markets and digital assets remains a crucial factor, as heightened economic uncertainty could either drive investors toward cryptocurrencies as alternative stores of value or trigger broader risk-off sentiment affecting all speculative assets.
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