Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) are facing growing pessimism due to the US President’s trade wars. The upcoming April 2 announcement is expected to intensify the bearish momentum, exerting further pressure on crypto assets. Movement (MOVE) is also experiencing similar bearish trends, declining by 7.5% today.

In the news today:-

• Terraform Labs, managed by Kroll Restructuring, is winding down its bankrupt estates, with creditors required to submit claims by April 30, 2025. Claims will address losses from Terrausd’s (UST) collapse, excluding Luna 2.0 holdings and tokens with under $100 in on-chain liquidity.
• Japan’s Financial Services Agency (FSA) plans to propose classifying crypto assets as financial products, with amendments to the Financial Instruments and Exchange Act expected by 2026. Currently, cryptocurrencies are categorized under the Payment Services Act as a means of settlement.

The Crypto Market Burns

The total crypto market cap fell by $31 billion in the last 24 hours, now sitting at $2.60 trillion. This drop has placed the market under the critical support level of $2.61 trillion, indicating a potential weakness and ongoing bearish pressure in the cryptocurrency space.

The April 2 announcement detailing Trump’s reciprocal tariffs is expected to drive further losses for crypto investors. The anticipated impact could push TOTAL to $2.50 trillion, deepening the current market downturn.

Total Crypto Market Cap Analysis. Source: TradingView

If broader market conditions improve, TOTAL could reclaim the $2.61 trillion support level. Successfully holding above this mark may pave the way for a recovery, potentially pushing the crypto market cap back to $2.74 trillion. A reversal of this magnitude would invalidate the current bearish outlook.

Is Bitcoin Losing Its Footing?

Bitcoin’s price saw declines over the weekend, continuing into the new week. The start of Q2 2025 and April may not be bullish as BTC approaches a Death Cross, with its EMAs signaling bearish potential. The market’s uncertainty could influence Bitcoin’s price further downward in the short term.

Further decline could bring Bitcoin to the crucial psychological support level of $80,000. Losing this support could trigger a deeper drop, potentially reaching $76,741. If Bitcoin fails to hold these levels, the bearish momentum may strengthen.

Bitcoin Price Analysis. Source: TradingView

For the bearish thesis to be invalidated, Bitcoin must reclaim $85,000 as support. This will require breaching and flipping the $82,761 level into support. If successful, Bitcoin could reverse its current trend, signaling potential recovery and stabilization for the cryptocurrency in the near future.

Movement Is Moving In The Wrong Direction

MOVE fell by 7.5% in the last 24 hours, trading at $0.41. The altcoin lost its support at $0.42, signaling further declines. The bearish pressure has intensified, and the token is at risk of continuing its downward trend if market conditions do not improve in the short term.

If the bearish momentum persists, MOVE could approach its all-time low of $0.37. Such a decline would likely trigger massive selling from investors, as fear of further losses could take hold. This could further exacerbate the downtrend, making it difficult for MOVE to recover quickly.

MOVE Price Analysis. Source: TradingView

However, if investors decide to capitalize on the low price and accumulate more MOVE, it could spark a reversal. A surge in buying activity could push the price above the $0.42 resistance level and potentially drive it toward $0.47. Such a move would invalidate the current bearish outlook and signal a potential recovery.