Market Panic Before April 2 - Cryptocurrencies in the Red, Bitcoin at $85,000

The cryptocurrency market has witnessed a sharp decline today. Market capitalization has fallen by more than 2% this week, with daily losses accelerating and major coins dropping significantly. But price action is just part of the story. Behind the numbers is the growing anxiety of investors about the next phase of the U.S. trade war. Red Cryptocurrency All major cryptocurrencies are recording losses today. Bitcoin fell 2.7% and is testing the $85,000 level. Ethereum has dropped below $2,000 with a daily loss of nearly 6%. XRP, Solana, Dogecoin, and Cardano have all lost over 5%.

Some of the worst-performing coins include POL (formerly MATIC), Immutable X (IMX) and JasmyCoin – each down more than 10%. Gains are limited to a few exceptions. Cronos, Toncoin, and FORM saw modest increases, but the pressure across the market is hard to ignore. Despite today's sell-off, many tokens in the top 100 still rose this week. However, the weekly gains are small and are losing momentum quickly. Macroeconomic Instability Returns The cause of this latest price fall is not due to a blockchain error or liquidation chain. It is the Market policy reacting to the upcoming tariffs announced by President Trump. With "Liberation Day" set for April 2, investors are preparing for a new wave of taxes on cars, aluminum, semiconductors, and many other items. U.S. stock indices fell again today. Gold, a traditional safe haven, has reached a new record high above $3,080. These are not random movements – they signal a shift in positioning. Cryptocurrencies are caught in the middle. Most institutions still view this as a risky asset and currently, investors do not want to take on additional risk as they approach a potentially chaotic April. Signs of Fear The Fear and Greed Index has risen from extreme fear last week. But that brief optimism has faded. Sentiment has fallen back, with today's reading at 44. This number is still above the panic level from the beginning of this month - but not by much. And for over a month now, we haven't seen any reading above 50 - both in cryptocurrency and the U.S. Stock Market Index.

All Eyes Are on April 2 April 2 is referred to by Trump as "Liberation Day," when comprehensive tariffs will begin. Some will target foreign-produced cars, while others will focus on imports related to national security concerns. Theoretically, this approach is about fairness and reciprocity. In fact, many analysts are concerned that this is an administrative and economic mess waiting to explode. Port officials are warning about the backlog situation. The Fed is signaling "no visibility" on inflation forecasts. And investors are pricing in the impending chaos. That is why cryptocurrencies are falling today – not because of anything wrong with the space itself, but because investors do not want to be caught off guard. Predictions based on patterns and indicators will not be very helpful at this moment. The pressure is coming from outside the charts. Until there is more clarity, expect caution to prevail. Volatility will remain high and any recovery, if it occurs, will depend on what April 2 truly brings – not on what technical factors suggest.