The crypto market fell 2.4% to $2.38 trillion as the one-year anniversary of Trump's Liberation Day tariffs brought fresh trade escalation, with the Fear & Greed Index sinking to 9.
The global crypto market dropped 2.4% to $2.38 trillion on April 3 as the one-year anniversary of Trump's "Liberation Day" tariffs coincided with fresh trade escalation, pushing the Crypto Fear & Greed Index back to 9, deep in extreme fear territory.
One year after the original "Liberation Day" tariff package of April 2, 2025, the anniversary brought renewed trade tensions as the Trump administration announced additional drug-related tariffs and adjusted metals duties. Risk markets sold off sharply, and crypto followed.
Bitcoin fell to around $66,868 on April 3, retreating from $69,268 earlier in the week. The total crypto market capitalization dropped to $2.38 trillion, shedding roughly $58 billion in a single day. Total trading volume across the crypto market reached $105.4 billion.
The Crypto Fear & Greed Index sank to 9, back in extreme fear territory. The reading is close to the all-time low of 5 hit on February 6 and matches the deeply bearish sentiment that has defined early 2026.
The tariff escalation amplifies an already fragile market environment. Bitcoin is now down more than 47% from its October 2025 high near $126,000. The selloff follows months of macro headwinds that have kept crypto markets under pressure.
Crude oil spiked to $113 per barrel, up over 14% in a single session, as analysts flagged the trade escalation as a signal of further US-China tensions. Higher energy costs feed into inflation expectations, reducing the likelihood of near-term rate cuts that crypto markets have been pricing in.
The tariff shock comes just weeks after the SEC and CFTC classified 16 crypto assets, including Bitcoin, Ethereum, and Solana, as digital commodities rather than securities. That regulatory clarity, announced on March 17, had been expected to support prices. Instead, macro forces have overwhelmed the positive signal.
Traders are monitoring whether Bitcoin can hold the $65,000 support level, which has acted as a floor multiple times in recent weeks. A break below could accelerate selling toward $60,000.
The Senate Banking Committee is expected to advance the CLARITY Act by late April, which would codify the SEC/CFTC commodity classification into law. Any progress on trade negotiations could also trigger a relief rally if the current fear subsides.
This is a developing story. The combination of tariff escalation and extreme fear sentiment has pushed crypto to one of its weakest moments of 2026. Whether current prices represent a capitulation bottom or the start of a deeper correction depends on how trade negotiations develop in the coming days.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
Michael Saylor's Strategy reported a $14.46 billion unrealized loss on its bitcoin holdings in Q1 2026, then purchased another $330 million in BTC days later.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
