Weekly Wire: Crypto Volatility, Tariffs, and Signs of a Bullish Shift

Market News

The crypto market experienced significant volatility last week, with total market capitalization dropping to $2.7 trillion — a 30% decline from December 2024's peak of $3.9 trillion. Bitcoin (BTC) slid 5% to $78,647, while Ether (ETH) dropped 12% to $1,575.  

Mantra (OM) faced a dramatic 90% crash, falling from $6.30 to under $0.50, wiping out $6 billion in market cap due to forced liquidations on centralized exchanges, according to co-founder John Mullin.  

Meanwhile, Trump’s new memecoin is under pressure ahead of a $320 million token unlock and ongoing controversy following tariff announcements. Despite the challenges, some traders, including BitMEX’s Arthur Hayes, speculate that easing trade tensions could spark a Bitcoin rally.  

Global market performance continues to be influenced by geopolitics. Trump’s recent reciprocal tariffs, including 104% duties on China, heightened fears of a global recession, leading to a sharp decline in risk assets. The S&P 500 approached bear market territory, erasing $400 billion daily for 32 consecutive days, while U.S. stock futures tumbled. However, a temporary pause on tariffs for non-retaliating countries announced on April 9 provided some relief, with BTC gaining 7.7% to reach $82,967 and XRP and Solana both climbing 11%.  

Markets remain cautious, awaiting clearer signals from China’s response and upcoming Federal Reserve rate decisions.  

On a more positive note, there are signs of emerging optimism. Senate Banking Chair Tim Scott announced that crypto legislation reforms targeting regulatory clarity could pass by August, bolstering sentiment across the industry. Additionally, Bitcoin’s Perpetual-Spot Gap is narrowing, which analysts like CryptoQuant’s Joao Wedson interpret as a sign of fading bearish sentiment and potential for a bullish market shift. 

Financial Advice Disclaimer: Nothing in this article constitutes professional or financial advice, performance data or any recommendation that any specific cryptocurrency, portfolio, index, investment product, transaction or investment strategy is suitable for any specific person. You assume the sole responsibility of evaluating the merits and risks associated with all financial decisions and should seek the advice of a registered financial advisor when in doubt.