- Bitcoin and Ethereum plunged to $77,000 and $1536 as market volatility continues.
- Coinglass reports $976M liquidated in long positions in the past 24 hours, triggering the sell-offs
- Binance’s PoR report shows a dip in user holdings, signaling cautious market sentiment.
The cryptocurrency market faced a sharp downturn on April 6, 2025, with Bitcoin dropping to $77,351, with a 6.92% decline. Ethereum also followed a sharp trajectory, falling to $1,536 with a 14.81% decline in the past 24 hours, as per data thrown by CoinMarketCap.
According to Coinglass, it has been reported that the market experienced $976 million in liquidations across the network in the past 24 hours, with long positions accounting for $842 million, and a total of 318,295 traders were liquidated as of press time. In the wake of these events, the ETH/BTC ratio has also followed the same pattern, dropping to 0.02089, its lowest level in nearly five years, as mentioned in a tweet by Altcoin Alerts.
This mass freefall comes amid the Trump administration’s new tariff policies that were imposed on all nations with a baseline of 10%. There were also drastically higher rates for countries like China, the European Union, and Japan. It could be possible that these economic measures have rippled the financial markets, resulting in the sharp sell-offs.
Related: Bitcoin Price Shows Volatility Amid Panic Selling and Buying
This dip has raised concerns and mixed reactions in the crypto community, wherein some traders see it as a classic buying opportunity while others fear it could signal the beginning of a prolonged bear cycle. Meanwhile, Binance released its 29th Proof of Reserves (PoR) report on April 1, 2025, revealing a monthly dip in user holdings across Bitcoin, Ethereum, and Tether. According to the report, user BTC holdings fell 2.48% to 612,000 BTC, which is down by 15,000 BTC from March 1, 2025. ETH holdings saw a similar drop, decreasing by 2.71% (152,000 ETH), standing at 5.465 million. Further, USDT also declined by 3.67%, totalling 28.32 billion, with a reduction of 1.08 billion USDT.
This downturn appears tied to broader market changes that happened earlier this year, signaling that the liquidation of long positions could force users to sell off their holdings, resulting in a visible dip. On a final note, Bitcoin’s drop underscores the market’s unpredictability, driven by liquidations, policy shifts, and geopolitical tension. However, the coming days could be crucial in determining whether BTC regains momentum or faces further decline.
