- Bitcoin’s sharp drop signals investor anxiety over global economic uncertainty.
- On-chain data reveals panic selling, with large transfers to exchanges rising.
- Bearish sentiment deepens as Bitcoin’s Bull Score Index hits a 2023 low.
Bitcoin’s sharp decline this week sent shockwaves through the crypto market after President Trump unveiled sweeping tariffs. As per Cryptoquant data, the announcement, which targeted over 100 countries, rattled investor confidence and sparked an immediate risk-off response. Bitcoin tumbled from a session high of $88,500 to as low as $81,000 before recovering slightly.
The drop marked one of the steepest intraday reversals since the start of the year. Other major assets, including Ethereum and XRP, also suffered notable losses. The sudden shift in sentiment revealed deep investor anxiety about the broader economic impact of the tariffs.
Bitcoin dropped from $88.5K to $81K after Trump announced new tariffs on 100 countries.
— CryptoQuant.com (@cryptoquant_com) April 3, 2025
Investors rushed to exchanges, one block saw 2.5K BTC move, with large flows into Coinbase.
Sentiment flipped fast. pic.twitter.com/VF8MYy6MER
Massive On-Chain Movements Signal Panic Selling
Large-scale token transfers to exchanges surged ahead of Trump’s speech, a clear signal of selling intent. One Bitcoin block recorded an inflow of 2,500 BTC within a short time window. At the same time, Coinbase reported a spike in deposits from large holders.
Ethereum saw inflows of nearly 80,000 ETH per hour, while XRP transfers to Binance exploded to 130 million in just 60 minutes. These heavy movements suggest traders were repositioning fast, anticipating further downside.
Additionally, open interest in perpetual futures dropped significantly as long positions were closed or liquidated. Bitcoin futures open interest fell from 334,000 to 304,000 BTC. Ethereum followed suit, shedding 100,000 ETH in futures contracts.
Lower open interest during a price decline often confirms that bulls are exiting the market. This behavior reflects a cautious outlook from both retail and institutional participants.
Bearish Indicators Deepen Amid Weak Demand
The broader sentiment across the crypto space has weakened further. Bitcoin’s Bull Score Index remains stuck at 20 its lowest point since early 2023. This index tracks momentum and investor interest and currently suggests a poor investment climate. If it stays under 40, the chances of a sustained recovery remain slim. Traders appear to be bracing for continued volatility rather than chasing rebounds.
Besides the technical pressure, the macroeconomic backdrop continues to sour investor mood. The new tariffs could disrupt global trade and trigger a slowdown in key markets. This risk adds another layer of uncertainty to already shaky financial conditions. For now, the market shows little appetite for risk, especially in digital assets.
As of today, Bitcoin trades around $84,395 with a 24-hour trading volume of $37.5 billion. The market cap remains near $1.67 trillion, but weekly losses reflect underlying weakness.
