Bitcoin fell sharply on Friday, slipping below $83,000 for the first time in two weeks as escalating trade tensions between the United States and China spooked investors across risk assets.
The largest cryptocurrency by market cap lost roughly 4.2% over the past 24 hours, dragging the broader crypto market down with it. Ethereum shed 5.8% to trade near $3,100, while Solana and Avalanche posted even steeper declines.
Traders pointed to renewed tariff threats from Washington as the catalyst. Late Thursday, the White House confirmed plans to impose additional duties on Chinese semiconductor exports, prompting Beijing to announce retaliatory measures within hours. Stock futures dropped in overnight trading, and crypto followed.
Trade War Escalation Hits Crypto
“Risk-off sentiment is back,” said Marcus Thielen, head of research at 10x Research. “When macro uncertainty spikes, used crypto positions are the first casualties.”
Liquidation data from Coinglass showed more than $340 million in long positions wiped out across major exchanges in the past 12 hours, with Binance and OKX accounting for the bulk of forced closures.
Altcoins Take Heavier Losses
The sell-off interrupted what had been a relatively calm stretch for Bitcoin, which spent most of March consolidating between $84,000 and $87,000 after its post-ETF rally stalled out in late February.
Some analysts remain cautious about calling a bottom. “We need to see the $80,000 level hold convincingly before getting constructive again,” wrote Katie Stockton, founder of Fairlead Strategies, in a note to clients Friday morning. “A weekly close below that would open the door to a retest of $74,000.”
Technical Outlook
Others see the dip as a buying opportunity. On-chain analytics firm Glassnode noted that long-term holders – wallets that haven’t moved coins in over 155 days – continue accumulating during every pullback, a pattern that historically precedes recoveries.
The Fear and Greed Index, which tracks crypto market sentiment, dropped to 31, its lowest reading since the FTX bankruptcy in November 2022.
What Comes Next
Meanwhile, spot Bitcoin ETFs recorded $127 million in net outflows on Thursday, snapping a five-day inflow streak. BlackRock’s iShares Bitcoin Trust (IBIT) bucked the trend with modest inflows, but Grayscale’s GBTC saw its largest single-day redemption in three weeks.
Altcoins fared worse across the board. The total crypto market cap fell below $2.9 trillion, down from $3.1 trillion at the start of the week. Memecoins were hit hardest, with DOGE and SHIB both dropping over 8%.
For now, all eyes remain on next week’s Federal Reserve meeting, where policymakers are expected to hold rates steady but may signal their timeline for cuts. Any hawkish surprises could extend the current downturn, while dovish language might provide the relief rally traders are waiting for.
