Crypto Weekly Wrap: 4th April 2025
Trump’s Tariff Shock Sends Global Markets into Turmoil
President Trump’s “Liberation Day” tariff policy is reshaping global trade. A new 10% baseline tariff and reciprocal levies—up to 49% on select countries—sparked sharp declines in global markets. U.S. indices dropped, with tech and auto sectors hit hardest. Bitcoin rose to $88,500 before falling back to $83,957 as volatility surged. Safe-haven assets like gold climbed, and the dollar strengthened. The policy targets major trade partners including China, Vietnam, and the EU, placing pressure on industries reliant on Asian supply chains. Market sentiment turned fearful, with the Crypto Fear and Greed Index plummeting to 25—signaling a return to "Extreme Fear."
Source: csis.org/Chip Somodevilla/Getty Images
Stablecoin Regulation Advances Amid Political Debate
The U.S. House Financial Services Committee advanced the STABLE Act to regulate dollar-pegged stablecoins. The bill proposes strict reserve backing, AML rules, and capital standards. Backed by Rep. French Hill and Rep. Bryan Steil, the act aims to provide clarity amid the rapid growth of digital dollars. However, debate raged over Trump’s crypto ties and the bill’s potential to serve insiders. Rep. Maxine Waters criticized the bill, citing conflicts of interest. While the House and Senate differ on handling foreign issuers, the STABLE Act represents a pivotal step toward comprehensive U.S. stablecoin regulation, with more legislation expected soon.
Source: X
Fear and Bitcoin Season Dominate Market Mood
Investor fear returned as macroeconomic and political uncertainty grew. The Altcoin Season Index dropped to 15/100, indicating a strong Bitcoin-dominated market. As altcoins underperformed, Bitcoin became the perceived safe haven amid geopolitical tensions and liquidation risks. The broader crypto market fell 4%, wiping out $514 million in liquidations—$290 million from long positions alone. Ethereum and Solana also posted notable losses. Analysts suggested Bitcoin must hold above $76.5K until Tax Day to retain bullish momentum. Without a new catalyst, Bitcoin and the broader market risk further downside under current conditions of extreme fear.
Source: CoinMarketCap
Bitcoin Faces Key Resistance as RSI Enters Overbought Zone
Bitcoin is trading near $83,957, bouncing from recent lows as bulls defend a major support zone, in line with the golden pocket Fibonacci retracement area. The RSI has surged to 80.86, clearly overbought, suggesting a potential cooldown or rejection around the $84K–$85K imbalance zone, a key decision level for traders.
Volume remains robust at 900M, confirming active market participation during the bounce. Technically, the current rally could push toward filling the imbalance above, but a reversal remains possible if selling pressure intensifies near resistance.
Should Bitcoin break below this key support, the next significant demand zone lies at $72K, implying room for a broader correction. Traders should watch for short setups around $85K while preparing for possible volatility.
The outlook remains cautiously bullish with risk of a sharp reversal if momentum fades.
Source: TradingView
Cardano Eyes Recovery, But Fundamentals Must Catch Up
Cardano (ADA) is trading around $0.659, attempting to regain ground after a sharp drop earlier this week that brought the price down to the $0.62 range. The RSI is at 67.51, approaching overbought territory, suggesting bullish momentum could soon face resistance. Volume is trending lower at 31.86M, reflecting reduced buying pressure following the initial bounce.
Source: AdaStat
ADA's price action mirrors broader sentiment: although boosted by attention from Trump’s crypto reserve and ETF speculation, March saw a steep 44% drop from a high of $1.14. On-chain data reveals a slight uptick in ADA holders, possibly signaling renewed long-term interest. However, analysts warn that media visibility and partnerships like Walmart cashback are not enough—actual utility in DeFi and retail remains crucial.
Technically, ADA needs to break above $0.68 with rising volume to confirm a reversal; otherwise, it risks drifting sideways below key resistance.
Source: TradingView
XRP Consolidates Near $2.00 Amid Bullish Narrative
XRP is currently consolidating around $2.08, holding above the key psychological support of $2.00 despite recent market volatility. The RSI is nearing overbought territory at 64.69, suggesting growing bullish momentum but also the potential for a short-term correction. Trading volume has cooled from 80M to 55M, indicating cautious optimism as traders await further news.
Technically, XRP is forming higher lows, hinting at a recovery phase after its March dip to $1.96. Market sentiment remains positive, driven by speculation around an ETF, a settlement with the SEC, and XRP’s inclusion in Trump’s crypto reserve. Experts believe XRP’s renewed narrative clarity could fuel institutional interest and long-term growth.
If XRP maintains support above $2.00 and breaks $2.15, a move toward the $2.30–$2.90 range becomes likely.
Source: TradingView
Grayscale Monetizes Bitcoin Volatility with New ETFs
Grayscale launched two new Bitcoin-linked ETFs—BTCC and BPI—that use options strategies to generate income. BTCC writes near-the-money calls for monthly yield, while BPI sells calls at higher strike prices for partial price exposure. These products reflect a shift toward repackaging volatility as an investment strategy in maturing crypto markets. Grayscale’s move follows the SEC’s spot Bitcoin ETF approval and shows growing interest in structured crypto products. These income-focused ETFs signal a broader financial trend: blending traditional income tactics with digital asset exposure, catering to investors seeking returns beyond simple price speculation.
Source: X
Conclusion
This week’s crypto recap captured a market under pressure, driven by geopolitical moves like Trump’s tariff shock, regulatory shifts including the STABLE Act, and token-specific stories from XRP, ADA, and BTC. While technical setups hint at potential recoveries, the overall sentiment remains cautious, as shown by widespread losses across major altcoins and a market leaning heavily on narrative over fundamentals.
The crypto market closed the week in deep red, with most major tokens posting significant losses—SOL dropped 11.14%, AVAX fell 11.34%, and SUI led declines with a 14.29% plunge. TRX stood out as the only top token in green, gaining 4.3%, while BTC and ETH dipped 1.97% and 4.88% respectively, reflecting broader market caution amid geopolitical and regulatory uncertainty.
Source: QuantifyCrypto
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