Crypto Weekly Update: $5T Market Jolt Hits BTC, ETH, and TON
In Brief
A staggering $5 trillion slump rocked the crypto landscape, leading Bitcoin, Ethereum, and Toncoin to endure significant losses as geopolitical strife and economic disorder took their toll on digital asset valuations.
If you happened to take your eyes off the market this week, you likely missed the $5 trillion wipeout that swept across global financial markets, leaving the crypto arena severely impacted. Bitcoin plummeted from an encouraging $88K to just under $75K in a matter of days. Ethereum faced a similar fate, dropping by 25% in that timeframe. Toncoin managed to delay the inevitable, but it too succumbed to the relentless downward pressure. This wasn’t just a regular market dip; it was a broad-based correction, and the charts resemble something that’s been hit hard with a blunt instrument.
Bitcoin: From “next stop $100K” to “please hold $70K” within five days
Wow, things escalated in no time. One moment, Bitcoin was flirting with breaking out past $88K, then suddenly it took a nosedive straight into a terrifying descent that would send shivers down any bull's spine. By April 7, it was desperately hanging onto the $74K support level, with its RSI indicating severe overselling at a low of 19 on the 4-hour chart – a classic sign of being oversold, but also a clear warning: don’t attempt to catch this downward spiral.
BTC/USD 4H Chart, Coinbase. Source: TradingView
So, what was the catalyst for this turmoil? Surprisingly, it wasn’t a scandal within the crypto world or any misleading ETF narrative – it was political upheaval. Trump’s newly imposed “Liberation Day” tariffs struck hard, sending shockwaves through global markets reminiscent of the infamous Black Monday in 1987. A 10% flat tariff on everyone? It’s no wonder the markets panicked. Stocks tanked. Commodities soared. And risk-centric assets, including Bitcoin, were cast aside.
Initially, Bitcoin attempted to maintain its footing. For a brief moment, it appeared it might break away from the pack, referencing the traditional narrative of “digital gold.” However, the broader market pressures pulled it back down to reality. Meanwhile, gold saw a rally, bond prices surged, and Bitcoin… lagged behind.
Gold funds monthly inflows. Source: Bloomberg
Behind the surface, some large players were still accumulating – Metaplanet in Japan boosted their holdings, and Saylor’s team remained bullish – yet retail investors were nowhere to be found. Inflows to exchanges dropped to levels not seen in two years. Overall sentiment plummeted. Even those typically keen on 'buying the dip' were silent.
Now, the burning question on everyone's mind is: will we see a bounce from here, or is this just a pause before we head down toward the $70K mark? According to some analysts, that’s seen as the pragmatic bottom – not necessarily because it’s fair, but simply because that’s where the liquidity likely exists.
Ethereum: Similar Turmoil, Smaller Scale, More Sell-offs
ETH didn’t just follow Bitcoin – it tripped over it. The price got pummeled down from $1,900 to $1,411, and with RSI below 15, it’s officially in the “panic zone.”
ETH/USD 4H Chart, Coinbase. Source: TradingView
The dramatic moment came with a staggering $106 million liquidation on the DeFi platform Sky. One investor, one significant margin call, and a cascade of liquidations followed.
ETH whale liquidations. Source: DeFi Explore
However, Ethereum’s struggle wasn’t solely because of market stress; its own fundamentals took a hit as well – there was a notable drop in weekly blob fees following the Dencun upgrade, plummeting to levels not seen since 2025. Layer 2 solutions aren't generating excitement. Developer activity seems stagnant, and even trading volumes for derivatives are lackluster. The narrative surrounding ETH as 'ultrasound money' is starting to sound more like a record that’s skipping.
Source: Etherscan
Nevertheless, Ethereum isn't out of the game yet. Stablecoin activity on the Ethereum network has witnessed significant growth, adding $30 billion in Q1, alongside Vitalik’s efforts to push for privacy solutions, which are gaining traction.
Stablecoin daily active addresses on Ethereum mainnet. Source: IntoTheBlock
The infrastructure is still operational. However, in a market that’s predominantly governed by macroeconomic factors, strong fundamentals may not be enough to influence prices. Bitcoin's performance drives the market, and unless BTC shows signs of recovery, ETH may find itself waiting in the shadows – perhaps down at $1,300 next.
Toncoin: The tiger finally flinched
...And then we have Toncoin - which until recently, appeared to be dodging the chaos altogether.
TON was among the select few larger tokens that showcased relative strength into late March. While Bitcoin faltered and Ethereum continued to slide, TON was riding high above the $4 mark, buoyed by optimism from Telegram and a flurry of positive news.
Pavel Durov was actively promoting Telegram’s bond initiative, emphasizing the platform's impressive growth and profitability. Tonkeeper Pro launched on-chain two-factor authentication integrated with a Telegram bot. STON.fi introduced a cross-DEX liquidity aggregator. Even the foundation wallet received enhancements, and TON Core showcased a beta version of its new layer-2 payment platform designed explicitly for Web3 microtransactions and already in use within TON Proxy.
What could go wrong? Fundamentals appeared fundamentally solid, and the atmosphere was optimistic, but the price took a nosedive.
Once Bitcoin and Ethereum began to spiral downwards, the once-appealing narrative of TON proved futile. In a risk-off environment, liquidity retreated. TON plummeted over 30%, dropping from $4.20 to below $2.90, with its RSI falling into the teens along with the rest of the market.
TON/USD 4H Chart, Coinbase. Source: TradingView
For the time being, the potential for TON’s growth depends less on developments from Telegram or tech advancements, and more on whether Bitcoin can stanch the bleeding. Until that happens, it’s just another alternative coin riding the same turbulent tide downward.
So what’s next? A dead cat bounce, or could this signal the beginning of another upward surge?
From a technical standpoint, we are past due for a relief rally. BTC and ETH's RSI readings are loudly indicating overselling. The entire market appears as though it has been through a blender. Historically, periods of pain like this attract opportunistic buyers – especially if the stock market begins to stabilize.
However, the macroeconomic environment remains chaotic. Trump’s tariffs aren’t disappearing anytime soon, the probability of a recession is rising, and there’s uncertainty surrounding whether Bitcoin will resume its role as a safe haven akin to gold or continue to behave like a volatile tech stock.
If Bitcoin can manage to push back over $76 to $78K in the near future, we might see that rebound. If not, the $70K mark looms ahead. Ethereum could hit $1,300, and Toncoin might settle around $2.5 – all scenarios are back on the table.
Indeed, it’s been quite a week. Perhaps one of the roughest since the FTX debacle, minus the fraudulent elements. Just raw, unfiltered macro stress. And it drives home a vital point: in the world of crypto, you’re trading more than just tokens. You’re trading stories and sentiments. Right now, the prevailing narrative is one of fear.
Disclaimer
In line with the Trust Project guidelines Please keep in mind that the information provided on this page is not intended to serve as legal, tax, investment, financial, or any other kind of advice. It’s crucial to only invest what you can afford to lose and to seek independent financial counsel if you have any uncertainties. For additional information, we recommend reviewing the terms and conditions, along with the support resources provided by the issuer or advertiser. MetaversePost is dedicated to delivering accurate, unbiased reporting, though market conditions can change swiftly without notice.
