The crypto market is experiencing one of its most volatile periods in recent months. Pressure is mounting amid a tariff war, economic uncertainty, and disruptions in altcoins. Nonetheless, analysts advise staying calm and using this moment to reassess strategies. Let’s break down what’s happening and how to act now.
The market remains under pressure following the announcement of new trade tariffs by Donald Trump’s administration. Despite a 3,1% increase in BTC over the past 24 hours and ETH returning to neutral sentiment according to Santiment, both assets remain far from their peaks: Bitcoin has dropped 28% from $109K, and Ethereum is down 68%.
Key Support Levels and Investor Behavior
Glassnode points to dense support zones between $74K and $70K. The strongest level is $71.6K, where around 41K BTC is held, and $69.9K, with approximately 68K BTC. These are levels where, according to experts, the market may slow its decline.
A report from Bernstein notes that despite the downturn linked to the tariff war, BTC’s resilience has been “impressive.” In their view, Bitcoin is a more volatile and liquid version of gold. Its reaction to risk doesn’t indicate weakness but rather that the market sees BTC as a gauge of uncertainty.
According to CryptoQuant, ETH has fallen below its realized price. Historically, this has signaled a bottom and has been a cue for accumulation by long-term investors.
Tariffs Won’t Stop It the Crisis Isn’t About Tariffs
Kaiko analysts also point out:
- Bearish sentiment in the options market, with puts making up over 65%, signaling fear of further decline.
- USDC market share has hit a record high.
- Trading volumes in the Korean won have dropped 57% since the start of the year — the worst result among all fiat currencies.
Amid this backdrop, Finance Minister Scott Bessent stated that more than 70 countries have approached him with requests for new trade deals. Meanwhile, the Washington Post reports that billionaire Elon Musk has urged Trump to lift tariffs on EU countries. However, Trump stated he is not yet ready to pause tariff policy.
China has promised to “fight to the end,” responding after Trump pledged to impose additional 50% tariffs on the country.
Ray Dalio The Collapse Is Deeper Than It Seems
Investor Ray Dalio pointed out that the main problem is not tariffs but systemic breakdowns:
- Debt overload: The U.S. lives on debt held by competing nations.
- Political crisis: Society is fractured, democracies are weakening.
- End of a unipolar world: The U.S. no longer plays by the rules.
- Natural and technological disasters: Pandemics, climate, and AI increase instability.
According to Dalio, these are all parts of one large cycle — a shift in the global order. In his view, economics and geopolitics can no longer be separated.
What Investors Can Do
Analyst DeRonin advises avoiding emotional decisions and not trying to “win it back.”
In his view, it’s best to avoid:
- Trading altcoins.
- Gambling on memecoins.
- Paying $15–$20 for drops.
- Staking assets.
- Believing in a “market rebound”.
Instead, investors should:
- Work on their personal brand.
- Strengthen their network.
- Look for jobs in Web3.
- Be active in meaningful projects.
- Find their niche — now is the time to set the stage for the next cycle.
Analysts remind us that every correction is followed by recovery. Panic is a bad advisor. What matters now is to stay clear-headed and use this time to reassess strategies.
Also Read:
- Bitcoin Losing Ground: Experts Warn of a Prolonged Selling Phase
- Could Enter a Sideways Trend for a Year — CryptoQuant CEO
- ARK Invest Bets on Bitcoin and Ethereum but Not on Memecoins — Cathie Wood
- Grayscale Names Top 20 Cryptos for Q2 2025
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.