The Crypto Fear and Greed Index has plunged to 25, marking a steep 19-point drop from the previous day and pushing the market into “Extreme Fear” territory. This sharp decline follows U.S.
President Donald Trump’s April 2 announcement of a sweeping “Liberation Day” tariff policy, which rattled both traditional financial markets and the cryptocurrency sector. Under the new policy, Trump introduced a 10% baseline tariff on all imports, with significantly higher rates for select countries—China faces a total of 54% (34% new plus 20% existing), Vietnam 46%, Taiwan 32%, India 26%, Japan 24%, and the European Union 20%. Canada and Mexico are currently exempt from the new tariffs, although they remain subject to existing duties that could be lifted at Trump’s discretion.
Trump also announced a 25% tariff on all foreign-manufactured cars, set to take effect at midnight on April 4. While the president argued that these measures would protect American industries and ultimately lower prices for consumers, markets reacted negatively. U.S. stock futures dropped sharply, with the Dow falling over 1,000 points and major losses recorded in the S&P 500 and Nasdaq.
Crypto markets mirrored this downturn as the global market cap shrank 4% to $2.7 trillion. Bitcoin initially spiked to $88,500 during Trump’s speech but quickly dropped to $83,073, down 2% in 24 hours. Ethereum fell 4% to $1,816, while Solana slid 5.2% to $119. According to Coinglass data, the volatility triggered $514 million in liquidations within a 24-hour period, including $290 million from long positions.
Arthur Hayes, co-founder of the BitMEX exchange, commented on the situation via X, stating that while the market has reacted strongly to the “Liberation Day” tariffs, Bitcoin would be “out of the woods” if it can stay above $76,500 until U.S. tax day on April 15. He also warned investors not to “get chopped up” by the ongoing market fluctuations. As macroeconomic uncertainty continues to weigh heavily, traders and investors alike are keeping a close watch on Bitcoin’s next move.
