The wider Asian major stock indexes opened Wednesday in jitters following the United States bid to impose a 104 percent tariff against China. The Asia Dow, Nikkei 225, and Hang Seng had dropped around 2 percent during the late eastern financial trading session.

With China anticipated to take the bullfight by the horns, investors have braced for a potential market recession ahead. Moreover, the ongoing tariffs will be largely felt by struggling households, as Wall Street experts forecast a spike in inflation in the near term.

Crypto Market Falls in Tandem 

With notable selloffs in major global stock market indexes, the cryptocurrency industry has not been spared in the widespread panic selling. According to market data from Binance-backed Coinmarketcap, the total crypto market cap dropped by around 5.8 percent to hover about $2.38 trillion at the time of this writing.

Bitcoin’s (BTC) price had dropped nearly 6 percent in the last 24 hours to trade around $75,359. Ethereum (ETH) price dropped over 10 percent in the past 24 hours to reach a daily low of about $1,386 before rebounding towards $1,425 at the time of this writing.

As a result of the heightened volatility, more than $404 million was rekt from the crypto leveraged markets, with over $304 million involving long traders.

What Next?

The wider crypto market has suffered bearish sentiment amid low demand from whale investors. For instance, the U.S. spot BTC ETFs recorded a net cash outflow of about $327 million, led by BlackRocks IBIT.

As Coinpedia previously noted, the crypto market will likely be trapped in further bearish sentiment until the ongoing tariff trade wars calm down. From a technical analysis standpoint, BTC price could experience a $10k drop in the coming days towards the support range between $63k and $67k, which coincides with the average price for Strategy’s BTC trove accumulation.

With the wider altcoin market, led by ETH, moving in tandem with BTC price action, more pain is inevitable. 

Nevertheless, on-chain data from Santiment shows now is a good time for long-term investors to begin accumulating altcoins, based on the MVRV mid-term opportunity and danger zone divergence indicator.