
The trade tariffs confirmation announcement by United States President Donald Trump on April 2 triggered a flurry of reactions from cryptocurrency investors, who anticipated market turbulence driven by the policy change. According to a weekly report by the on-chain analytics platform CryptoQuant, the crypto market witnessed a sell-off before and during the press conference held for the announcement. Since then, bearish conditions have persisted. Crypto Investors’ Reaction to Trump’s Tariffs As the press conference approached, investors scrambled to transfer their BTC to crypto exchanges. The rush was so high that a single Bitcoin block recorded as much as 2,500 BTC. The largest American crypto exchange, Coinbase, also witnessed a significant spike in BTC deposits, especially from large holders. The uptick in exchange deposits was not peculiar to BTC; investors also rushed to transfer their ETH and XRP to trading platforms. ETH deposits to exchanges rose to an hourly maximum of roughly 80,000 ETH, while XRP transfers spiked to 130 million tokens—a far cry from the 10 million per hour transactions seen the previous day. CryptoQuant said these large exchange inflows indicated that investors were positioning themselves to sell their assets due to the rising economic uncertainty. During the press conference, BTC, ETH, and XRP plummeted by 6.2%, 7%, and 5%, respectively, erasing the price gains they had garnered that day. This is a clear indication that investors did sell their holdings. BTC Demand Plummeted Moreover, demand for BTC and ETH in the perpetual futures market declined as traders closed their positions to take profits during the conference. The total open interest for BTC fell from 334,000 BTC to 304,000 BTC, while that of ETH plunged by 100,000 ETH. CryptoQuant revealed that falling open interest during a price drop indicates that traders are exiting long positions due to liquidations or anticipating further decline. After the conference, demand for BTC from U.S. investors was reduced. This was seen in the Coinbase Bitcoin Premium falling from 0.04% before the tariffs confirmation announcement to 0.03% after Trump’s speech. “For the price of Bitcoin to rally significantly, it needs relatively higher demand from US investors,” CryptoQuant stated. Meanwhile, the Bull Score Index still suggests that BTC is in a bear market. For weeks, the metric has been at 20, its lowest level since January 2023, flashing signals seen in previous bear phases. The post Crypto Investors React to Trump’s Tariffs Announcement: Here’s What Happened appeared first on CryptoPotato .
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Ethereum Capitulation May Be Nearing End – Will A Fed Pivot Spark A Recovery?
Ethereum has extended its downtrend, setting fresh lows around $1,400 — a level not seen since early 2023. The continuation of selling pressure has shaken market sentiment, with many investors fearing that the worst is still ahead. Ethereum, down over 65% from its 2024 highs, has failed to find a solid support level amid broad market weakness and growing macroeconomic uncertainty. Related Reading: Ethereum Lags Behind Bitcoin In Q1 Performance Amid Market Downturn – Details Despite the bearish outlook, some analysts believe a turning point may be near. According to top analyst Ted Pillows, Ethereum is now deep in a capitulation phase. He suggests that while there may still be one final 5%–10% dump left in the tank — particularly given the recent weakness in equities — the broader market structure may be setting the stage for a rebound. Pillows points to a potential Federal Reserve pivot as a key catalyst. With traditional markets under pressure and volatility rising, a shift in monetary policy could bring relief. Historically, changes in the Fed’s stance have provided a strong boost to risk assets. If support from policymakers emerges, Ethereum could stabilize and begin recovering from its recent lows — but not before weathering one last wave of fear and uncertainty. Ethereum Capitulation Deepens, But Fed Pivot Could Spark Rebound Ethereum is trading at $1,450 after suffering a sharp 20% decline in just hours, marking one of its steepest drops this year. The panic-driven selloff has shaken investor confidence, with fear now dominating the market. Ethereum, once expected to lead the altcoin rally in 2025, has failed to deliver on those expectations. Instead, it continues to disappoint as bearish momentum builds and selling pressure intensifies. Wider market conditions are adding to the pain. Trade war tensions, policy uncertainty from the US President Donald Trump administration, and mounting fears of a global recession are dragging both equities and crypto lower. With the S&P 500 already down sharply, the fear of a broader financial contagion is rising. Pillows’ analysis supports that Ethereum’s current plunge reflects a full-blown capitulation. However, he suggests that the market could be nearing a turning point. “Maybe there’s one last dump left, but after that, it’ll bounce,” Pillows said. The key reason? A likely pivot from the Federal Reserve. Pillows points to a potential Federal Reserve pivot as the catalyst. With the S&P 500 down over 10% in just two days and volatility rising, any further drop could force an emergency Fed response. Historically, rate cuts and renewed quantitative easing (QE) have been bullish for risk assets like Ethereum. If a pivot arrives, Ethereum could quickly bounce from current levels — but only after one final shakeout. Related Reading: Solana Faces Defining Level At $120 – Will History Repeat? Ethereum Slides To $1,410 As Bears Maintain Control Ethereum has plunged to $1,410 after losing the crucial $1,800 support level, triggering a wave of aggressive selling and panic across the market. With no clear support zone immediately below current levels, bearish momentum appears firmly in control as ETH struggles to find footing. The breakdown below $1,800 marked a major technical failure, erasing confidence among traders and accelerating downside pressure. For now, the path of least resistance remains to the downside. If sentiment doesn’t stabilize soon, Ethereum could continue sliding into lower demand zones, possibly retesting levels not seen since early 2022. The lack of a defined support structure beneath current prices leaves ETH exposed to more volatility in the near term. Related Reading: Dogecoin Faces Make-Or-Break Support Level – Will DOGE Hold? However, hope remains for a recovery — but it hinges on a swift reclaim of the $1,800 level. A strong bounce back above this mark could signal that capitulation is complete and invite renewed buying interest from sidelined investors. Until then, Ethereum remains vulnerable, and any upside attempts will likely face resistance unless backed by broader market strength or a decisive macro shift. Bulls have a narrow window to flip the momentum before deeper losses set in. Featured image from Dall-E, chart from TradingView Crypto Potato