Crypto Markets Show Extreme Caution Amid Tariff Fears
Traders are being very careful in the crypto markets. This is because of the trade war between the U.S. and its trading partners. On April 4, funding rates on many exchanges fell below 0.005%. This shows that traders are feeling very negative.
Liquidation rates have also dropped by 42% in the last 24 hours. This might seem good, but it means traders are avoiding risks. Trading volumes fell by 22.71% to $247.6 billion. These numbers show that market activity is slowing down.
Bitcoin is also showing signs of trouble. On April 3, the crypto fear and greed index was at 25, indicating âextreme fear.â Bitcoinâs price dropped to $81,000 after the tariff proclamation. Itâs now facing a âdeath cross,â a sign of high volatility. This happens when the 50-day moving average crosses below the 200-day moving average.
Both crypto and stock markets have been struggling since April 2. President Trump announced tariffs on foreign goods.China faced a 34% tariff. Othre countries are planning to retaliate. Traders fear this could lead to higher prices, disrupt supply chains, and cause a recession.
