Bitcoin plummeted to $74,000, with over 450,000 people liquidated. What is the outlook for the market trend going forward?
On April 7, 2025, according to BTCC market data, the price of Bitcoin has significantly dropped today, falling to a low of $74,550, currently reported at $75,153, with a 24-hour decline of 4.17%. Ethereum's decline is even more severe, breaking below the $1,500 mark, currently reported at $1,458, with a 24-hour decline of up to 7.71%. Meanwhile, the altcoin market is experiencing a widespread crash.
According to Coinglass data, over the past 24 hours, more than 449,000 people have been forcibly liquidated across the network, with a total amount reaching $1.37 billion. Among them, the liquidation amount for long positions reached $1.208 billion, accounting for as much as 86%; the liquidation amount for short positions was $169 million. Market panic has further intensified.
The total market capitalization of cryptocurrencies has significantly shrunk, decreasing from $2.6 trillion to $2.38 trillion, a decline of 10%. The total market capitalization of Bitcoin has fallen below $1.5 trillion, currently at $1.49 trillion, with a 24-hour decline of up to 9.8%; Ethereum's market cap has dropped below $180 billion, reported at $179.4 billion, with a 24-hour decline of up to 18.2%.
Considering recent macro and market changes, the current downturn in the crypto market may be mainly influenced by the following three factors:
1. Downward Transmission Effect from U.S. Stocks
Recently, U.S. stocks have continued to perform poorly, with the Nasdaq index officially entering a bear market, leading to a decrease in overall market risk appetite. As a high-risk asset, cryptocurrencies are the first to bear the brunt in the context of rising global risk aversion, putting significant pressure on prices.
2. U.S. Tariff Increases Trigger Global Market Concerns
On April 2, former U.S. President Trump signed an executive order imposing a new round of tariffs on several trading partners. This move has reignited global concerns about economic recession, leading to a collective pullback in risk assets, and the crypto market has not been spared.
3. Market Capital Outflow and High Leverage Liquidations
The current market is in a high-level consolidation phase, lacking new capital inflows for support, resulting in weak bullish sentiment. Once prices experience a rapid decline, a chain liquidation effect is quickly triggered, exacerbating panic selling and short-term crashes.
Currently, Bitcoin has briefly fallen below $75,000, with a key support level around $74,000. If the price falls below this level, it may further decline. For Ethereum, if it continues to oscillate below $1,500, further weakness should be anticipated. In the short term, investors should pay attention to the Federal Reserve's policy direction, U.S. economic data, and global geopolitical risk events, as these factors will continue to impact market trends.
