Crypto sentiment flips to ‘Fear’ as Bitcoin plunges after Trump’s tariffs
News Summary
Crypto market sentiment has plummeted to its lowest level in nearly six months after US President Donald Trump announced a 100% tariff on China. The Crypto Fear & Greed Index sharply declined from a “Greed” reading of 64 on Friday to a “Fear” level of 27 on Saturday. Following Trump’s tariff announcement, Bitcoin (BTC) briefly dipped to $102,000 on the Binance perpetual futures pair. Approximately $19.27 billion worth of long and short positions were liquidated across the crypto market over the past 24 hours, according to CoinGlass. Despite the bearish sentiment, Andre Dragosch, Bitwise European head of research, noted that the company’s intraday crypto asset Sentiment Index “generated a strong contrarian buying signal,” reaching its lowest level since the “Yen Carry Trade Unwind” in summer 2024. However, Santiment analyst Brian Quinlivan observed that Bitcoin’s recent all-time high of $125,100 did not generate the same level of social media euphoria as previous highs.
Background
It is currently 2025, and Donald J. Trump has been re-elected as US President in November 2024, known for his aggressive trade policies, particularly concerning China. Historically, trade tensions, especially tariff announcements, tend to trigger volatility in global financial markets and directly impact sentiment in risk assets. While often seen as a safe-haven or inflation hedge, the cryptocurrency market, particularly Bitcoin, remains highly sensitive to macroeconomic events and geopolitical risks. The article notes that in April 2025, Bitcoin tumbled to $77,000 amid escalating trade tensions, which subsequently eased after Trump announced a pause on some tariffs. The Crypto Fear & Greed Index serves as a key gauge of market sentiment, with a rapid shift from “Greed” to “Fear” typically indicating heightened risk aversion among market participants.
In-Depth AI Insights
What does Bitcoin's muted social media reaction to new highs suggest about the current maturity or investor sentiment in the crypto market? - The lack of