Bitcoin Plummets Over Tariff Woes, Ethereum ETFs Hit With Major Outflows

Bitcoin Price Slides Amid Tariff Uncertainty

Bitcoin experienced a significant drop of over 2% on Sunday, falling to $83,482 during Asia trading hours. This decline came after mixed signals from the Trump administration regarding tariffs on Chinese-made electronics. The uncertainty surrounding trade policies has unsettled crypto traders, with Ethereum also dropping below $1,600. Altcoins showed mixed results, according to CoinGecko data.

President Trump clarified on Truth Social that while some electronics were temporarily excluded from a new 10% tariff regime, they would still face a separate 20% levy tied to national security concerns. Commerce Secretary Howard Lutnick announced that additional tariffs on electronics would be introduced within two months. Despite a temporary reprieve that boosted equity markets, crypto markets showed little resilience.

"NOBODY is getting ‘off the hook’ for the unfair trade balances, and non-monetary tariff barriers, that other countries have used against us, especially not China, which, by far, treats us the worst!" – President Trump

Analysts are closely monitoring Bitcoin's support level near $81,000, as a break below this threshold could lead to further market liquidations. The geopolitical risks and inflationary concerns have dampened expectations for an emergency rate cut by the Federal Reserve.

Cryptocurrency	Price
Bitcoin (BTC)	$83,482
Ethereum (ETH)	$1,639.52

Key Takeaway: Bitcoin's price drop highlights the impact of geopolitical uncertainty on the crypto market, with analysts warning of potential further declines.

Bitcoin Surges Above $85,000 Amid Open Interest Growth

Bitcoin's price climbed above $85,000 on April 12, driven by bullish momentum following President Trump's exemption of certain electronics from new trade tariffs. This price surge was accompanied by a 15.8% increase in open interest on Binance, with $1.2 billion flowing into derivatives within 24 hours. Binance now accounts for 31.4% of the market's total futures open interest, which stands at approximately $28 billion.

Analyst Burak Kesmeci noted that the rise in open interest indicates heightened market activity and increased volatility. While Bitcoin's price reached $85,240, reflecting a 2.5% daily increase, traders are advised to exercise caution due to the potential for sharp liquidations in leveraged positions.

Metric	Value
Bitcoin Price	$85,240
Open Interest Growth	15.8%

Key Takeaway: Bitcoin's price rally above $85,000 is supported by increased open interest, signaling strong market activity but also potential volatility.

Ethereum ETFs Face Outflows Amid Price Decline

Ethereum exchange-traded funds (ETFs) have experienced seven consecutive weeks of outflows, with $82.4 million withdrawn last week. The cumulative assets of all Ethereum ETFs now stand at $5.25 billion, significantly lower than Bitcoin ETFs, which hold $93 billion in assets. Ethereum's price has dropped by 62% from its all-time high, currently trading at $1,655.

Competition from other blockchain networks, such as Solana and Tron, has contributed to Ethereum's challenges. Additionally, the ETH/BTC pair has reached its lowest level in five years, reflecting Ethereum's declining dominance in the market.

Key Takeaway: Ethereum ETFs are shedding assets as the cryptocurrency faces increased competition and a prolonged price decline.

Trump-Linked Crypto Project Buys $775K in SEI

World Liberty Financial, a crypto project linked to the Trump family, has purchased $775,000 worth of SEI tokens. This acquisition adds to its growing portfolio, which includes Bitcoin, Ethereum, and other altcoins. However, the project has yet to see profits on its investments, with its portfolio currently down $145.8 million.

The SEI purchase was funded using USDC transferred from the project's main wallet. Despite the losses, the project continues its altcoin accumulation strategy, signaling confidence in the long-term potential of its holdings.

Key Takeaway: World Liberty Financial's continued investment in altcoins highlights its commitment to diversification, despite current portfolio losses.

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