There are a number of interrelated factors that contributed to the recent decline in the market for cryptocurrencies, which had an impact on assets like Solana (SOL), Bitcoin (BTC), Ethereum (ETH), and XRP
. 1. Preparation for the New U.S. Prior to President Trump’s “Liberation Day” tariffs on Wednesday and Thursday, the market is experiencing uncertainty. The price of Bitcoin has fluctuated as a result, currently hovering around $85,700, below its 200-day average. Market uncertainty may be exacerbated by the lack of clarity surrounding these tariffs, according to analysts. INVESTOR’S
Mixed Economic Indicators: In the United States, there is a significant gap between economic sentiment and actual activity. Hard data like equity inflows, the consumer price index (CPI), personal consumption expenditures (PCE), labor market statistics, and corporate earnings remain relatively stable, despite surveys and consumer sentiment indexes indicating growing pessimism. Investors are uncertain as a result of this dichotomy, which has an effect on both traditional and cryptocurrency markets.
Institutional Investor Uncertainty as a result of Growing Trade Tensions: Particularly between the United States and China, growing trade tensions are causing institutional investors to be cautious. Portfolios have changed as a result, with some analysts predicting that Bitcoin could fall further to $80,000 as traders prepare for extended trade.
Recent Changes in the Market: As of April 3, 2025, Ethereum and XRP have lost up to 2%, and Bitcoin has fallen below $66,300. Recent U.S. economic data, particularly robust manufacturing and labor market readings, have raised the possibility that the Federal Reserve may delay rate cuts, influencing this decline. The complex interaction between macroeconomic events, investor sentiment, and market dynamics is reflected in the fact that all of these factors are contributing to the current decline in the cryptocurrency market.
