Daily Crypto Signals: Bitcoin Hits Four-Month Low, XRP Plunges Amid Tariff Fears
The cryptocurrency market experienced a significant downturn today as escalating global trade tensions, fueled by US President Donald Trump
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The cryptocurrency market experienced a significant downturn today as escalating global trade tensions, fueled by US President Donald Trump’s tariffs, triggered a widespread sell-off. Bitcoin plummeted to a four-month low, and XRP saw substantial liquidations, reflecting the risk-off sentiment gripping investors. Despite this market turmoil, some analysts maintain that the crypto bull market has not yet begun.
Crypto Market Experiences Major Correction as Trade War Fears Intensify
On April 7, the crypto market collapsed; during the height of the sell-off, overall market capitalization dropped by 10% to $2.41 trillion. US President Donald Trump’s application of global tariffs, which raised questions regarding a possible recession and drastically changed investor attitude toward risk avoidance, was mostly responsible for the fall.
To show the strength of selling pressure, trading volumes throughout the cryptocurrency market jumped 293% during a 24-hour period to $165.05 billion. With long positions making up $1.22 billion of the approximately $1.4 billion in liquidations produced by the market-wide slump.
Comparable to the COVID-19 crash and FTX collapse, more than 460,000 traders were liquidated during this period, representing one of the biggest liquidation occurrences in crypto history.
From $2.67 trillion on April 5 to an intra-day low of $2.31 trillion on April 7, the whole market capitalization of all cryptocurrencies fell by about $350 billion in just three days. Though the market has now rebounded somewhat to $2.4 trillion, it still remains 35% below its all-time high of $3.73 trillion attained in December 2023.
When is the Crypto Bull Market?
Industry analysts believe that the crypto bull market has not yet realized its potential even with the current slump. Drawing comparisons between the present market conditions and the COVID-19 crash in 2020, which preceded a 20x increase in Bitcoin’s value, MN Capital founder Michael van de Poppe suggested during a panel discussion at the LONGITUDE by Cointelegraph event in Paris, MN Capital is “actually getting started from this point.”
Eric Turner, the CEO of Messari, presented this positive view, noting that the actual bull market has not yet started. Turner said that the actual bull market would show up in Q3 or Q4 of 2025, implying that recent price swings just signal transient market corrections rather than the expected parabolic expansion phase.
Bitcoin Recovers From Four-Month Lows
On April 7, Bitcoin BTC/USD dropped to a four-month low of $74,500, momentarily below the vital 50-week exponential moving average, which has traditionally acted as a separating line between bull and bear market stages. Market analysts say BTC has to recover the 50-week EMA, which is currently close to $77,500, in order to prevent a more significant correction maybe toward the $69,000-$70,000 level.
The current slump matched the historic first-time 1 zetahash per second (ZH/s) achievement of Bitcoin during its 16-year lifetime. On April 5, the network hashrate crossed this threshold and, based on mempool.space data, peaked at 1.025 ZH/s. From January 2016, when Bitcoin initially hit 1 exahash per second, this is a 1,000-fold rise.
Ethereum (ETH) suffered especially amid the market downturn; its price dropped to $1,410 on April 7, lowest level since March 2023. CoinGlass data shows that this steep drop set off liquidations of leveraged ETH futures at over $370 million in just two days. Ethereum has lagged the larger cryptocurrency market by 14% over the past 30 days even regaining over the $1,500 level.
Ethereum’s Network’s Resilience Despite Price Drop
Ethereum’s network exhibits indications of resiliency even with the price fall. On April 6, the Ethereum network’s total value locked (TVL) hit an all-time high of 30.2 million ETH—a 22% rise over last month. Over the same period, this increase exceeded Solana (12%) and BNB Chain (16%), showing ongoing confidence in Ethereum’s fundamental ecosystem.
The delay in the expected Pectra upgrade—originally set for April—added more pressure on Ethereum’s ETH/USD pricing. Though no particular explanation was given for the delay, developers have now decided May 7 as the mainnet launch date.
XRP Short Liquidations Drive Bearish Moves
With substantial liquidations in the derivatives market indicating great downward pressure, XRP’s XRP/USD price behavior reflected the general market fall. Along with $11.56 million in short liquidations during the market fall, almost $59 million worth of long XRP holdings were sold. This liquidation scale matches the interval between February 2 and February 4, during which a 40% price decline resulted in the wiping out of $112.25 million in long XRP positions overall.
With open interest falling to $2.87 billion—63% below its January top of $7.8 billion—XRP’s futures market exhibits signs of declining enthusiasm. Add to this consistently negative financing rates in XRP perpetual futures markets since early March, which suggests that short position holders are paying premiums to keep their bearish bets.
The particular sensitivity of the cryptocurrency to changes in global trade flows implies that ongoing tensions over tariffs could affect XRP’s price performance in the next weeks as investors reconsider its value for cross-border transactions in a global environment going more protectionist.
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