Crypto markets just took a bruising. Bitcoin and Ethereum are both down over 25% from their January highs, with Bitcoin falling below $75,000 this week. The drop isn’t about crypto itself falling apart. It’s the bigger macro mess—from Trump’s fresh tariff salvos to the U.S. government walking back regulatory oversight—that’s pushing risk assets off a cliff.
Tariffs and Trade Panic Rattle Crypto Markets
The immediate pressure came from the White House. On April 3, President Trump hiked tariffs on Canadian and Mexican imports and slapped a 20% increase on Chinese goods. That sent traders scrambling. Bitcoin dipped below $82,000 within hours of the announcement. China’s threat of a 34% retaliation only made things worse. With fears of a full-blown trade war returning, investors are dumping volatile assets—and crypto’s first in line.
Liquidations Worsen the Selloff as Traders Bail
But it wasn’t just panic selling. The drop triggered over $1.4 billion in liquidations across crypto markets in just 24 hours, according to Coinglass. That included more than 450,000 traders who were forced out of long positions. As prices dropped further, margin calls snowballed. According to CryptoRank, this liquidation wave hit altcoins especially hard, sending Ethereum (ETH-USD) and Solana (SOL-USD) deeper into the red. The domino effect didn’t stop until markets had shaved off billions in value.
DOJ Abandons Crypto Cases Amid Trump’s Deregulation Drive
While markets crumbled, the U.S. Department of Justice dropped a shocker. In a memo obtained by CoinDesk, Deputy Attorney General Todd Blanche confirmed the immediate shutdown of the DOJ’s National Cryptocurrency Enforcement Team. “The Department of Justice is not a digital assets regulator,” Blanche said. The move follows Trump’s executive order to bring “regulatory clarity,” which many now interpret as deregulation. The DOJ will no longer prosecute crypto platforms for regulatory violations unless there’s clear criminal intent.
Fundamentals Hold Strong as Long-Term Holders Accumulate
Amid the bloodbath, long-term holders seem unfazed. According to Binance, wallets holding Bitcoin for more than 155 days have accumulated over 400,000 BTC since February. Total long-term holdings are now above 13.5 million. That kind of conviction doesn’t come from day traders—it comes from people betting on the next decade.
After a brutal 25% market drop, tariff shocks, and the DOJ backing off enforcement, knowing where your crypto stands is more important than ever. You can track live price movements, dive into technical analysis, and use investor-friendly tools to monitor key tokens—all on the TipRanks Cryptocurrency Center. Click on the image below to find out more.
