The crypto market is spinning from a major escalation of geopolitical tensions following an 84% tariff on American goods after China escalated its trade war with the U.S. That steep response and new export restrictions on key rare earth elements have sent global markets reeling and sparked a flight from risk assets — led by the slump in cryptocurrencies.
As of April 9, the global crypto market cap has been reduced to $2.46 trillion, a decline of 2.86% within 24 hours. Bitcoin sells for approximately $77,664, down 2.84% in the daily inventory and close to 9% weekly. Ethereum has done even worse, down more than 5% in 24 hours and more than 20% weekly, with prices nearly $1,487. Many altcoins, including XRP and SOL, are also deep in the red.
After a tumultuous April 8, which many deemed a Good Tuesday, Wednesday showed signs of a bearish trap. At the time of reporting, the global crypto market capitalization is down by nearly 5%. The fear & Greed Index currently reads a deeply pessimistic 15—bordering on "Extreme fear"—and the Altcoin Season Index reads 17/100, but it also indicates strong Bitcoin dominance and risk aversion.
However, on-chain data tells a different story, with a clear divergence between retail and institutions. Holdings from large investors have gradually fallen since early March, while retail positions are unchanged—a sign that smart money is stepping back.
Deteriorating macro conditions are adding to the slide: U.S. 10-year yields are rising, and credit spreads are widening—classic indicators of tighter liquidity. With collapsing shipping demand and stalled trade flows, crypto markets are stuck in a global unwind with little light at the end of the tunnel.