Bitcoin, Ethereum Flat, Dogecoin Drops Amid Trump Tariffs-Fueled Uncertainty: Analyst Firm Foresees 'Strength In Demand' If BTC Stays Above This Level

Leading cryptocurrencies dipped on Wednesday as investors weighed the market uncertainties of President Donald Trump’s tariff-related announcements.

What Happened: Bitcoin wobbled between the highs of $86,000 and $87,000 throughout the day as trading volume fell by more than 10% in the last 24 hours.

The apex cryptocurrency was up 3.30% over the week but slid nearly 6.70% over the quarter, its worst since the COVID-19 outbreak during 2020.

Industry observers acknowledged that Bitcoin has reacted more to macroeconomic triggers recently and that uncertainty has caused short-term ripples.

Ethereum too stagnated, bouncing in the range just south of $2,000. The second-largest cryptocurrency experienced an even worse first quarter, falling 39% as of this writing.

Long liquidations hit over $113 million in the last 24 hours, significantly higher than bearish shorts.

Bitcoin’s Open Interest rose marginally by 0.10% in the last 24 hours, while funds locked in Ethereum’s futures dipped 1.44%. 

The percentage of Bitcoin futures traders positioned bearish on the cryptocurrency exceeded those betting on its price increase, suggesting further downsides could be possible.

The market remained gripped by “Fear” sentiment, according to the Crypto Fear and Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.84 trillion, following a drop of 0.24% in the last 24 hours.

Stocks sank further on Thursday. The Dow Jones Industrial Average fell 155.09 points, or 0.37%, to close at 42,299.70. The S&P 500 slid 0.33%, ending at 5,693.31, while the tech-focused Nasdaq Composite dipped 0.53% to close at 17,804.03.

Investors likely reacted to Trump’s new 25% tariffs targeting foreign automakers.

Shares of domestic automakers like General Motors Co. GM and Ford Motor Co. F plunged 7.36% and 3.88%, respectively, during the session.

See More: Best Cryptocurrency Scanners

Analyst Notes: Well-known blockchain analytics firm CryptoQuant noticed that short-term holders who bought Bitcoin within the last week were profitable.

“The 1w-1m cohort’s realized price is around $84,740, meaning if BTC dips towards this level, it could act as support,” CryptoQuant added.

The firm stated that if BTC stays above this level, it will signal “strength in demand.” Conversely, a move below could indicate a potential reversal.

Widely followed cryptocurrency trader Daan Crypto Trades stated that Bitcoin’s price would continue to be “heavily” influenced by headlines, given that Trump’s tariff “Liberation Day” was approaching. 

“Would not be surprised to hang around the mid-$80,000s for a while until that blows over,” the trader predicted.

“Now that reserves have plateaued, it looks like investors are sitting on the sidelines,” Martinez remarked.

Photo by SvetlanaParnikova on Shutterstock

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