U.S. Tariffs Spark Market Lull, Altcoins Lose 42% Market Cap

Glassnode's latest report highlights the impact of recent U.S. tariff announcements on major financial markets, noting that several markets have experienced their lowest trading volumes since March 2020. This has led to a stall in inflows into mainstream digital assets, resulting in significantly reduced liquidity and strong headwinds.

Despite these challenges, the report indicates that the selling pressure during each price dip of Bitcoin and Ethereum is showing a decreasing trend. This suggests that the short-term selling pressure may be nearing exhaustion. The current round of digital asset sell-off has seen a widespread decline, with the total market capitalization of altcoins shrinking from $1 trillion in December 2024 to the current $583 billion.

According to the analysis of on-chain data and technical models, $93,000 is identified as a key psychological level for Bitcoin. To rebuild upward momentum, Bitcoin must reclaim this price level. On the downside, the $65,000 to $71,000 range is considered a critical defense line that bulls must hold to prevent further declines.