2025-04-07 11:07:01
Bitcoin volatility rises amid Trump's trade policies. Commissions on the Ethereum network have fallen to a low. FTX has rejected hundreds of thousands of investor refund claims. A British woman accidentally threw away a wallet holding Bitcoins during a cleanup job
The crypto market is storming: Bitcoin reacts to Trump's duties and U.S. Fed chief's statement
U.S. President Donald Trump has imposed duties ranging from 10% to 50% on imports of all goods that come into the States from other countries. He announced his decision on the evening of April 2, 2025.
Against the backdrop of this news, the crypto market came under pressure. Daily liquidations on April 4 reached $250 million — $120 million in longs and $130 million in shorts. This equilibrium indicates high uncertainty in the market.
Bitcoin’s dominance index continues to rise, reaching 62%, indicating investors' desire to stay close to a more "safe" asset amid volatility.
Bitcoin initially rose from $81.8k to $84.7k but then fell sharply after China announced retaliatory tariffs on imports of U.S. goods. Later, the rate tried to recover but sagged again amid reports on the U.S. labor market and restrained comments from Fed chief Jerome Powell. He said that the increased tariffs may boost inflation, but there is no discussion of lowering the discount rate.
As of April 7, 2025, the value of the first cryptocurrency fell to $75.1k. Altcoins collapsed by 15-20%. Liquidations have exceeded $1 billion in a day. The stock market is also going down. Quotes began falling precipitously after Trump administration officials announced that tariffs would not be postponed. Experts have already labeled April 7 as "Black Monday" for global financial markets.
What do the experts have to say?
- Boris West (CryptoQuant) believes that BTC could fall to $65k - $71k and considers this range the most favorable for buying the coin.
- Cass Abber, a crypto trader, has detected a "falling wedge" pattern on the Bitcoin chart, which may indicate that a rebound in the exchange rate is imminent. However, BTC must overcome the $86.5k mark to confirm the reversal.
- Ki Young Ju (CryptoQuant) is sure that the bullish market is over, and in the coming months or until the end of the year, the exchange rate will either decline or be stuck in a "sideways."
- Arthur Hayes (BitMEX) believes a trade war between the U.S. and China could push Bitcoin to $1 million amid declining confidence in traditional assets.
Commissions in Ethereum have fallen to their lowest since 2020: Why is this a red flag?
Commissions in the Ethereum blockchain have fallen to their lowest level in four years. In just the first quarter of 2025, users spent about $208 million on transaction fees, down 60% from the same period last year.
Analysts explain that the decline in fees was most affected by the shift of transactions to Layer-2 — faster and cheaper blockchains deployed over the main network. Coinbase's L2 blockchain Base is particularly active, with a throughput of up to 80 transactions per second.
While minimal fees may please regular users, they are not necessarily good for the Ethereum ecosystem, as they lead to lower ETH burn. As of November 2024, Tether, Uniswap, MetaMask, and 1inch began destroying 95% fewer tokens. As a result, Ethereum's inflation rate has risen to 0.75% per year, which could be higher than Bitcoin's, and that's a worrying sign.
Ethereum’s exchange rate fell 45% in the first three months of 2025, marking its worst quarterly performance since 2022. Against Bitcoin, it sagged 39%, hitting a five-year low.
Despite the disappointing numbers, some "whales" are not losing faith. After the price fell below $1,800, they bought more than 130 thousand ETH, expecting a long-term recovery. As of Monday, April 7, the Ethereum exchange rate has fallen to $1,452.
Investors are hoping for a May update to Pectra, which should improve the usability of the Ethereum network and bring back interest in it.
FTX rejected hundreds of thousands of compensation requests due to verification issues
Liquidators of the bankrupt crypto exchange FTX rejected almost 400 thousand requests for payouts. The reason is that users did not pass the identity verification (KYC), which is a mandatory condition that had to be met by March 3, 2025.
It is estimated that the total amount of rejected requests may reach $2.55 billion. $665 million of them are requests for less than $50k, and $1.9 billion — from $50k and above. Liquidators explained that additional measures were necessary because FTX had previously poorly verified clients and had not found the sources of their funds.
Payments on large requests (over $50 thousand) are planned to start on May 30. Earlier, in February of this year, users with assets up to $50 thousand already received $1.2 billion in compensation. The company's lawyers noted that FTX has received 27 quadrillion applications — among them, billions require verification and may turn out to be fake.
British woman accidentally threw away a flash drive with $3.8 million worth of Bitcoins
During cleaning, UK resident Ellie Garth threw away a flash drive where her partner had stored cryptocurrency.
The woman mistook the flash drive for an old school drive and did not know it contained a crypto wallet with Bitcoins purchased back in 2013. They are now estimated to be worth $3.8 million.
When her husband Tom noticed it was missing, Ellie realized the mistake. The couple tried to find the flash drive in the trash, but to no avail.
The story is reminiscent of the case of another Brit — James Howells, who lost access to 7,500 BTC by throwing away a hard drive back in 2013. Experts believe that it is almost impossible to find such devices in a landfill, but Howells is still trying to recover his millions. After learning that the UK authorities were going to mothball the landfill, he announced his intentions to buy the landfill with the help of investors and continue his search.
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