Bitcoin Plunges Below $75K as Global Markets Panic
The global markets, including the Nikkei (-8%) and TSMC, triggered a worldwide panic, causing Bitcoin to drop below $75,000 and resulting in over a billion dollars in liquidations.
The decline in Bitcoin was partly anticipated, but trade tensions rekindled by the Trump administration intensified the drop in risky assets.
The unexpected rebound of the Australian dollar against the US dollar could signal a forthcoming relief, as the AUD is often an early indicator of market panic subsiding.
As crypto assets lost their shine in early April, the drop in Bitcoin below $75,000 alarms investors and analysts. The resurgence of trade tensions driven by the Trump administration creates an unstable climate, weighing down on risky assets as a reflexive flight towards safety ensues.
Asian Markets in Agony Propel BTC Below $75K
This Monday morning, Asia woke up in panic mode. The Japanese Nikkei plunged 8%, forcing a suspension of futures contracts. In Taiwan, over 1,000 stocks hit their daily limit down, including TSMC, the global semiconductor giant, which plummeted as soon as the market opened.
The crypto market was not spared. Bitcoin lost nearly 6% in 24 hours, falling to $74,555, while Ethereum plummeted by 17%, reaching $1,416. The GMCI 30, an index representing the top 30 cryptocurrencies, dropped by 8.6%. Overall, liquidations exceeded one billion dollars in 24 hours, despite a lack of data from many major exchanges.
The announcement on April 2nd regarding new taxes evidently rekindled fears that the markets had tried to forget.
Anticipated Technical Decline, But Amplified
The double top pattern identified as early as January portended a correction of BTC towards $75,000. This level has just been breached, lending credence to predictions of a classic pullback in a bull market, which could find support between $70,000 and $75,000.
But beyond technical analysis, it is indeed the macroeconomic context that exacerbates the trend. Uncertainties over US trade policy and its impact on trade balances and interest rates continue to fuel a widespread risk aversion, pushing investors to flee the most volatile assets.
A Glimpse of Hope from the Australian Dollar
In this deleterious climate, an unexpected signal revives a faint hope for Bitcoin bulls: the rebound of the Australian dollar. Historically sensitive to trade tensions, the AUD has gained ground against the US dollar, rising from 0.5930 to 0.6011. This turnaround is particularly noteworthy after a more than 4% drop on Friday, an unusually violent movement for a national currency.
Why does this detail matter? Because the AUD often acts as an advanced barometer of capital flows related to commodities and China, Australia’s main economic partner. A rebound in the Australian dollar suggests that panic in risky assets may be coming to an end. In other words, the climax of the sell-off driven by tariffs could possibly be reached.
A Still Unclear Trump Plan
Uncertainty, however, remains dominant. The market awaits with nervousness three key elements: a coherent response from the rest of the world to US policies, a credible long-term plan from the Trump administration, and a clear stance from the Federal Reserve in the face of escalating tensions. In the absence of these signals, any attempt at buying at low prices – the famous bottom fishing – is more of a gamble than an obvious strategy.
For the most seasoned investors, we could be in a typical reload zone. For others, it’s a slippery slope where ‘catching a falling knife’ can prove fatal.
