Umair
The Crypto Fear and Greed Index has plunged to 25, dropping 19 points from the previous day and pushing the market into “Extreme Fear” territory.
This steep drop follows U.S. President Donald Trump’s Apr. 2 announcement of aggressive new “Liberation Day ” tariffs, which unsettled both traditional and cryptocurrency markets. Trump’s policy sets a 10% baseline tariff on imports, with much higher rates for specific countries.
China is now subject to a 54% tariff, which combines a new 34% rate with an existing 20% duty. A 20% rate will be imposed on the European Union, while Vietnam (46%), Taiwan (32%), India (26%), and Japan (24%) will also be affected by increased rates.
However, Canada and Mexico are exempt from the 10% baseline tariff and additional reciprocal levies for now. The 10% tariff would only be imposed if Trump withdraws the 25% duties that are currently in place on these nations, which were put in place initially because of concerns about drug trafficking and crime.
Trump also imposed a 25% tariff on all cars made in other countries, which would go into effect at midnight on Apr. 4. Although investors responded with skepticism, he claimed that the measure would protect American industries and result in lower prices for consumers.
Following Trump’s tariffs announcement, U.S. stock markets plummeted, with Dow futures dropping over 1,000 points and significant losses in the S&P 500 and Nasdaq. Crypto markets followed suit. The broader crypto market cap shrank 4% to $2.7 trillion, as per crypto.news price tracker.
Bitcoin (BTC) initially spiked to $88,500 as Trump took the stage but quickly dropped to $83,073, down 2% in the last 24 hours. Other major cryptocurrencies also saw losses. Ethereum (ETH) fell 4% to $1,816, while Solana (SOL) dropped 5.2% to $119. The sell-off triggered $514 million in 24 liquidations, with $290 million coming from long positions, according to Coinglass data.
Arthur Hayes, co-founder of the BitMEX crypto exchange, noted via X that while the market has reacted negatively to the the “Liberation Day” tariffs, the market would be “out of the woods” if Bitcoin stays above $76,500 until U.S. tax day on April 15. He warned investors not to “get chopped up.”
