Bitcoin’s price action has entered a critical phase amid escalating global trade tensions, with the leading cryptocurrency testing a key support level at $77,000. Recent developments in the global trade war have sent shockwaves through crypto markets, triggering significant liquidations and heightened volatility.
2-Year Realized Price: A Critical Support Level
According to CryptoQuant analyst Onchained, Bitcoin is approaching a crucial threshold at its 2-Year Realized Price, a metric that has historically served as a reliable indicator of market sentiment and potential trend reversals. This on-chain metric, which calculates the average acquisition cost of coins moved within the past two years, has maintained support since October 2023.
The convergence of spot prices with this key metric comes as Trump’s tariff policies continue to impact global markets, creating increased uncertainty across both traditional and crypto assets.
Record Liquidations Signal Market Stress
The market witnessed its largest Bitcoin long liquidation event of the current bull cycle on April 6, with approximately 7,500 BTC in long positions being forcefully closed. This event, coinciding with heightened trade policy uncertainty, underscores the increasing correlation between macro events and crypto market dynamics.
Expert Analysis and Market Outlook
CryptoQuant analyst Darkfost emphasizes the importance of risk management during this period of elevated volatility: ‘This is a clear reminder that we need to stay cautious during periods of rising volatility like today. This is the time to care and preserve your capital.’
FAQ Section
What is the 2-Year Realized Price?
The 2-Year Realized Price is an on-chain metric that calculates the average price of all Bitcoin moved on the blockchain within the last two years, serving as a key indicator of market value and potential support/resistance levels.
How do tariffs affect Bitcoin price?
Tariffs can impact Bitcoin price through increased market uncertainty, changes in capital flows, and shifts in investor risk appetite across global markets.
What caused the recent liquidation event?
The recent liquidation event was triggered by a combination of factors including escalating trade tensions, market uncertainty, and overleveraged positions in the derivatives market.