The key market indicators suggest that merchants are exercising extreme caution in cryptography markets, since Trump tariffs cause a generalized bearish feeling.
The growing commercial war between the United States and most of its main commercial partners is affecting the fear of merchants. On Friday, April 4, financing rates in the most centralized and decentralized exchanges fell below the 0.005%threshold, a sign of an extreme bearish feeling.
At the same time, liquidation rates have dropped 42% in the last 24 hours. While this may seem good news, it is likely to indicate that merchants are charging and remain on the sidelines. This is aligned with a strong decrease in volume trade, which fell by 22.71% in 24 hours to $ 247.6 billion. In total, these figures point to chopped market activity.
Bitcoin approaches the cross of death about tariff fears
The market shows other signs of anguish. On the one hand, on April 3, the cryptographic index of fear and greed was in territory of “extreme fear”, with 25 points. In addition, Bitcoin (BTC), which fell to $ 81,000 after the announcement, faces a “cross of death”, historically an indicator of high volatility.
Bitcoin’s 50 -day mobile average approaches its 200 -day mobile average, and can soon cross it. This crossover generally looks like a bearish indicator, which suggests that merchants are preparing for a turbulent period in cryptographic markets.
Both cryptographic and the stock market have been in danger since the announcement of April 2 of radical tariffs in virtually all US business partners. Donald Trump announced minimum 10% tariffs on all foreign goods, with larger tariffs in selected countries. Namely, China was beaten by a 34%tariff.
In response, several countries, including China and the European Union, are preparing retaliation measures. Merchants now fear that this growing commercial conflict can increase consumer prices, interrupt global supply chains and cause a recession.
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