Bitcoin Plummets Amid Rising Trade Tensions
On April 9, Bitcoin and the broader cryptocurrency market faced significant losses as trade tensions escalated between the United States and other nations. Bitcoin’s value dropped by four percent, trading at approximately $76,538 (around Rs. 66.2 lakh) on global exchanges. In India, the cryptocurrency saw a steeper decline of nearly five percent, with prices fluctuating between $78,494 (roughly Rs. 67.9 lakh) and $80,228 (approximately Rs. 69.4 lakh). Analysts warn that the market’s current trajectory raises concerns about a potential bear market.
Market Reaction to Trade Tariffs
The recent increase in tariff rates by the U.S. to 104 percent on Chinese imports has created a wave of uncertainty among investors. This development has contributed to Bitcoin’s sharp decline, which is now nearing the critical threshold of $75,000 (approximately Rs. 64.9 lakh) for the second time this week. The CoinDCX research team highlighted that the market sentiment has turned extremely fearful, suggesting that traders are bracing for a prolonged downturn. The overall cryptocurrency market has slowed considerably, reflecting the heightened anxiety surrounding global trade relations.
Ether and Altcoins Suffer Major Losses
Ether, the second-largest cryptocurrency by market capitalization, experienced a staggering drop of over eight percent in just one day, trading at $1,455 (around Rs. 1.25 lakh) on global platforms. On Indian exchanges, Ether’s value fell by more than nine percent, settling at approximately $1,509 (around Rs. 1.30 lakh). The ZebPay Trade Desk noted that Ether has been in a downtrend for the past four months, plummeting nearly 65 percent from its previous highs. The asset recently hit a low of $1,411 (roughly Rs. 1.22 lakh) and is currently facing a critical support level at $1,500 (approximately Rs. 1.29 lakh). Analysts predict that Ether’s price may remain rangebound between $1,350 (around Rs. 1.16 lakh) and $2,150 (approximately Rs. 1.86 lakh).
Overall Market Decline and Investor Sentiment
The overall cryptocurrency market capitalization has decreased by five percent in the last 24 hours, now standing at $2.42 trillion (approximately Rs. 2,09,44,075 crore), according to CoinMarketCap. Many altcoins, including Ripple, Tether, Solana, Dogecoin, Cardano, and Tron, have also succumbed to the market pressure, reflecting a widespread downturn. Despite this, a few altcoins, such as Tether, Leo, Iota, and Qtum, managed to retain small gains. Riya Sehgal, a research analyst at Delta Exchange, emphasized that global trade tensions are now significant drivers of volatility in the digital asset space. With over $400 million (around Rs. 3,461 crore) in liquidations and shorts making up 60 percent of open interest, investor sentiment has turned cautious.
Advice for Investors
As the cryptocurrency market continues to face turbulence, analysts are urging investors to remain vigilant and cautious with their investment strategies. The current market conditions are expected to remain choppy for the foreseeable future, potentially lasting several weeks. Investors are advised to stay informed and consider the risks associated with trading in this volatile environment. It is crucial to approach cryptocurrency investments with a clear understanding of the inherent market risks.
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