Bitcoin and Crypto Market Struggle to Stabilize as Sentiment Remains in Extreme Fear

As of April 4, 2025, the cryptocurrency market continues to grapple with significant volatility, with Bitcoin and other major coins struggling to find a stable footing. Here’s a detailed summary of the current market situation and future outlook.

Crypto Market Struggles to Find Bottom, Sentiment in Extreme Fear

The crypto market cap fell below $2.65 trillion twice this week, approaching levels not seen since November. The market is likely to defend this level, promising a prolonged battle. However, the capitalisation index is moving away from its 200-day average, signaling large funds may reduce investments. The Cryptocurrency Sentiment Index ended the week in extreme fear at 25, the lowest in three and a half weeks, but not low enough to suggest oversold conditions.

Bitcoin price crashes due to Trump’s tariffs

Bitcoin price drops over 6% after U.S. President Donald Trump announced aggressive tariffs targeting 185 nations on the 2nd of April. The tariffs hit Bitcoin and altcoins hard, with market sentiment shifting toward a cautious, bearish outlook. Liquidations were significant, and asset prices fell sharply. The global economy is bracing for ripple effects, and it remains uncertain if Bitcoin can ride out the storm or if this is the beginning of a deeper plunge.

Jack Dorsey Warns of Bitcoin’s Risk of Institutional Capture

Jack Dorsey, CEO of Block and former Twitter chief, warned in an interview that the growing popularity of Bitcoin (BTC) among major financial institutions could threaten the open ethos that gave rise to the world’s largest cryptocurrency. Dorsey acknowledged that large-scale involvement is practically inevitable but emphasized the importance of maintaining Bitcoin’s permissionless nature.

How Trump Tariffs Are Changing Bitcoin | US Morning Briefing

Bitcoin has been notably calm in reaction to recent macro shocks, particularly Trump’s tariffs, compared to traditional markets which have stumbled. This resilience is seen as evidence that Bitcoin may be entering a new phase of market maturity. While Wall Street experiences larger-than-expected drops, crypto remains relatively stable. Stella Zlatarev, Nexo Dispatch Editor, discussed this with BeInCrypto.

Why Bitcoin’s $65k-$71k Zone Matters for Long-Term Investors

Bitcoin’s support zone between $65,000 and $71,000 is crucial for long-term holders (LTHs), signaling strong demand. The active realized price hovering around $71,000 and the true market mean at $65,000 reinforce this support zone. Any dip within this range may be seen as a buying opportunity for long-term investors.