Trump's Tariffs Spark 5% Nasdaq Drop, 93.9% Notcoin Plunge

On April 2, the cryptocurrency market experienced a significant downturn following President Trump's announcement of sweeping tariffs on nearly 200 countries. This move, part of his "America First" strategy, imposed a 10% duty on most imports, a 34% duty on Chinese goods, and a 20% duty on EU imports. The financial markets, both traditional and digital, reacted sharply to this news. Nasdaq 100 futures plunged 5%, Japan’s Nikkei 225 dropped 6%, and South Korea’s Kospi tumbled 4.4%. This geopolitical statement quickly turned into an economic earthquake, rippling into the crypto market and causing a deep selloff in digital assets.

Bitcoin, the dominant cryptocurrency, dropped to a three-week low of $76,693, dragging the rest of the market with it. This decline had a particularly brutal impact on smaller-cap altcoins like Notcoin. As of April 6, Notcoin was trading at $0.001748, down from its all-time high of $0.02836 on June 2, 2024. This represents a staggering 93.9% decline, reflecting the extreme fragility of tokens that lack institutional backing or strong liquidity. Unlike Bitcoin, which still benefits from hedge funds and high-net-worth interest, Notcoin is being abandoned in favor of cash and stable assets.

The ripple effect of this market downturn has led to massive liquidations. On April 6 alone, $778 million in long positions were wiped out. In just 24 hours, 327,264 traders were liquidated, with the total hitting $1.02 billion. The Crypto Fear & Greed Index plunged to 17, squarely in “extreme fear” territory. Ethereum hit its lowest point since October 2023 at $1,538, and Solana followed suit, dropping to $107. Notcoin, with none of their resilience, took an even sharper dive.

Analysts are now questioning whether this marks the start of a crypto winter. While most investors are running for cover, some voices remain bullish in the long term. Arthur Hayes, co-founder of BitMEX, believes the tariffs could ultimately push more people into decentralized assets like Bitcoin. He claims that global imbalances will be masked by money printing, which could favor BTC in the long run. However, this optimism feels distant in the current market climate. Crypto analyst Charles Edwards has warned that if Bitcoin loses key support, it could slide as low as $71,000, putting even more pressure on the already bleeding altcoin market.

As markets digest the full implications of Trump’s tariffs, one thing is clear — Bitcoin’s price is the anchor, and right now, it’s not holding strong. Whether it bounces or breaks lower will decide the fate of altcoins like Notcoin, which are already dangling off the edge. Until then, the market remains on high alert, and the fear is real. The interconnectedness of the crypto market with the broader financial system has become increasingly apparent, highlighting new vulnerabilities. The drop in Bitcoin's price has weakened sentiment across the board, with high-beta tokens like Pi Network bearing the brunt of the sell-off. The Pi price, which once peaked near $3, has failed to regain momentum and continues its slide into a deeper bearish phase.

Technical indicators suggest that the Pi price has no clear bottom yet, and the declining volume indicates a lack of buying interest. The recent price action of Pi Coin has been marked by failed breakouts and increasingly bearish technical signals. A converging triangle pattern formed ahead of March 5 but broke to the downside, leading to a reversal and a low of $0.4000 around 04:00 UTC on April 5. Despite a brief rally to an intraday high of $0.7990, the price quickly retraced to $0.5400, followed by another breakdown on March 6. The pattern of tight consolidation and subsequent breakdowns suggests fading bullish momentum and increasing vulnerability to further downside.

The broader macro environment, shaken by tariff shocks and risk-off sentiment, has stripped away the usual resilience seen in crypto. For Pi Network, which lacks strong institutional backing or deep liquidity, this makes recovery even harder. Until macro conditions stabilize and technicals reset, Pi Coin remains at risk of further losses. Unless it can reclaim key levels and hold them, any bounce may prove short-lived in a market increasingly driven by external forces and fading risk appetite. The current situation underscores the need for altcoins to build stronger foundations and diversify their support to withstand market volatility.