Key Takeaways:
- Bitcoin plunges to $74,500, while Ethereum drops to $1,380
- Trump’s “Liberation Day” tariffs spark widespread crypto sell-off
- Glassnode data indicates potential seller exhaustion forming
The cryptocurrency market faced severe turbulence as President Donald Trump’s “Liberation Day” tariffs triggered a massive sell-off, sending Bitcoin below critical support levels and pushing major digital assets to their lowest points since early 2023.
According to Glassnode’s latest market analysis, Bitcoin plummeted to $74,500 while Ethereum reached $1,380, marking a significant downturn that has rattled investor confidence. However, emerging data suggests this intense selling pressure might be reaching its limits.
Market Impact Analysis
The recent price action follows a broader pattern of market-wide liquidations, with researchers Ukuriaoc and Cryptovizart identifying two key factors behind the decline:
- Tariff-induced liquidity strains
- Weakening U.S. dollar performance
Signs of Seller Exhaustion
Despite the bearish price action, Glassnode’s on-chain metrics reveal potential seller exhaustion forming in both Bitcoin and Ethereum markets. Key indicators include:
- Declining sell-side pressure
- Increasing accumulation by long-term holders
- Rising whale address activity
Expert Analysis
Market analysts suggest the current downturn could present a strategic entry point for long-term investors. The convergence of technical indicators and on-chain metrics points to a potential trend reversal in the coming weeks.
FAQ Section
Q: What caused the recent crypto market crash?
A: The primary catalyst was President Trump’s “Liberation Day” tariffs, which sparked concerns about global liquidity and economic stability.
Q: Are Bitcoin and Ethereum showing signs of recovery?
A: While prices remain under pressure, Glassnode data indicates decreasing sell-side momentum and potential seller exhaustion.
Q: How does this compare to previous market corrections?
A: The current correction represents the largest drawdown since early 2023, though on-chain metrics suggest stronger fundamental support than previous downturns.