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ETH Declines To $1,450 Due To Asian Trading market Chaos And $890M Worldwide Crypto Liquidation

Apr 7, 2025

Amidst the increasing unrest in the trading market, on 7 April 2025, ETH plummeted to $1450, reflecting a 20% decrease and its lowest point since late 2023. Bitcoin experienced a similar downturn, falling 10% to $74,700, while the GMCI 30 index, which monitors leading crypto tokens, declined by 8.6%.

The cryptocurrency sector is currently encountering significant challenges. Just within the past 24 hours, $890 million in trades were liquidated, consisting of $758 million from long positions and $133 million from short positions.

Experts attribute the trading market turbulence to rising trade conflicts and uncertainties in policy, with the Guardian on 7 April 2025 remarking that Wall Street might be heading towards a bear trading market based on insights from the futures market.

Jeff Mei, the COO of crypto asset trading platform BTSE, remarked, “Historically, crypto markets have shown a tendency to anticipate stock markets over the weekend, and this morning’s downturn in the Asia trading market appears to have confirmed this outlook.”

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Ethereum, Bitcoin Performance Inextricably Linked to Asian Equity Market

The connection between conventional equity markets and the crypto asset world has been visible for a while, and this recent decline in the stock crypto market has triggered a ripple effect on the crypto environment as well.

Coinciding with the crypto downturn, the Asian stock market faced a steep drop, with Japan’s Nikkei 225 sinking by 8%, while South Korea’s Kospi and China’s Shanghai Composite saw declines of 4.6% and 5.8%, respectively. Additionally, Taiwan’s crypto market, upon reopening following a break, registered over 1000 stocks hitting limit down.

As noted in a blog post from the IMF, leading cryptocurrencies such as Bitcoin and Ethereum have gradually aligned their performance more closely with the Asian equity trading market. This post underscores the necessity for regulators to implement measures that alleviate financial stability threats, given the tripling of market fluctuation correlations between digital assets and the Asian market since 2020.

Peter Chung, research head at Presto, commented that the risk appetite has shifted due to the heightened tariffs from the US, and traders are withdrawing market fluidity from established digital assets like Ethereum as they seek safer investments.

With traders exiting the scene, the crypto environment is experiencing market fluctuation not seen in quite a while. Numerous altcoins are experiencing double-digit losses alongside blue-chip coins, highlighting the extent of the market downturn.

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Can a Crypto Rebound Occur?

Chung asserts that recovery will depend on three major factors: the global community’s actions, the Trump administration’s capability to articulate a clear and sustained strategy, and the Federal Reserve’s expected actions to stabilize the current trading market conditions.

Chung stresses, “The Growth Scare 2.0 is fully in motion, with markets now factoring in over 100 bp rate cuts this year.”

Alankar Saxena, CTO and co-founder of Mudrex, a crypto trading network in India, expressed, “Bitcoin continues to demonstrate resilience, trading at $83,000, despite the market fluctuation driven by Trump’s retaliatory tariffs.” However, Ethereum is facing fears concerning an increasing token supply and potential hyperinflation, which are alarming investors.

Discussing the overselling phenomenon currently affecting the crypto landscape, Nick Ruck from LVRG Research states, “This could result in an oversaturation of digital assets, which are significantly influenced by shifting sentiments and their internal ecosystem economics, including tokenomics and BTC crypto mining.”

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Key Insights

  • ETH declines to $1,450, reaching its lowest point since late 2023.
  • $890 million in crypto liquidations signal mounting trading market instability and trader hesitation.
  • The volatility correlations between digital assets and the Asian crypto market have tripled since 2020.

The article ETH Drops To $1,450 Amid Asian Crypto market Turmoil And $890M Global Crypto Liquidation first appeared on 99Bitcoins.

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