- Bitcoin faces intense pressure as a “death cross,” trade tariffs, and historic fear levels spark panic selling.
- With short-term holders capitulating and markets bracing for emergency Fed action, a drop to $70K looks increasingly likely.
Bitcoin is having a rough week — and it’s not just crypto feeling the heat. Global markets are flashing warning signs reminiscent of “Black Monday” in 1987 and the COVID-19 crash of 2020, with Bitcoin now caught squarely in the crossfire.
Here are five key things to know as BTC flirts with disaster:
1. The Death Cross is Here
Bitcoin has just formed a dreaded “death cross” on its daily chart, where the 50-day moving average falls below the 200-day. This technical signal is often seen as a precursor to extended bearish trends. BTC/USD has already plunged below the crucial $75K level, and eyes are now on support at $69K — a level not touched since the bull run began in 2021.
Also read: First Digital Trust Scandal Is Worse Than FTX
2. Tariff Turmoil is Spilling Into Crypto
The new wave of U.S. trade tariffs is spooking markets, with broad sell-offs across equities and crypto alike. Investors are bracing for further fallout as more tariffs are expected to roll out on April 9, fueling fears of inflation and recession. Commerce Secretary Howard Lutnick confirmed that “the tariffs are coming” — and markets are reacting accordingly.
3. Emergency Rate Cuts on the Horizon?
The Fed is facing growing pressure to cut rates ahead of schedule to calm the chaos. With inflation data due this week and investor sentiment in free fall, whispers of an “emergency” rate cut are growing louder. FedWatch data now favors a May rate cut, weeks earlier than expected.
4. Short-Term Holders Are Panicking
On-chain data shows short-term Bitcoin holders — those who bought in the past six months — are capitulating. The Spent Output Profit Ratio (SOPR) has dipped below 1, signaling widespread selling at a loss. Historically, this type of panic often coincides with local bottoms, but not without more pain first.
5. Sentiment Hits Rock Bottom
The Traditional Fear & Greed Index just hit a historic low of 4/100 — worse than during COVID or the FTX collapse. Crypto sentiment, while still grim, is faring slightly better at 23/100.
While some see a buying opportunity, others warn that Bitcoin could still test $70K before a true bottom forms. Buckle up — the next two weeks could be a wild ride.