Bitcoin fell below $78K and ETH below $1600, while risk sentiment shows slight stabilisation

    by VT Markets
    /
    Apr 7, 2025

    Bitcoin has fallen below $78,000, while Ethereum is priced under $1,600. Both crypto and gold markets are currently experiencing declines.

    There is a possibility of slight stability in the selling of risk assets, suggesting a preference to sell during a risk rally rather than buy on dips, with scalpers potentially benefiting from both approaches.

    Trump’s decreasing credibility is creating market uncertainty, with concerns regarding the impacts of his communications. His references to unconventional tariffs and dismissals of market collapses raise questions about the rationale behind his policies.

    We’re seeing strong pressure across major asset classes, with digital currencies and traditional safe havens both trending downward. Bitcoin moving under that psychological $78,000 mark, and Ethereum dipping under $1,600, signals more than a routine pullback. It reflects a mood that’s hesitating to reward risk, especially when broader macro conditions don’t offer clear guidance.

    The description of a possible period of “slight stability” in risk-off selling points to a behaviour we’ve observed before — traders seem more inclined to offload assets during brief market bounces rather than aggressively accumulate at lower levels. Essentially, we’re not seeing much appetite for catching falling knives. This doesn’t mean opportunities don’t exist, but it implies rewards are more likely for those nimble enough to enter and exit in rapid succession rather than hold firm convictions. Those focusing on narrow price moves with tight risk controls — the scalpers — could benefit, particularly when short-term volatility rises as longer-term direction remains murky.

    The commentary on Trump adds a layer that markets must now absorb in real time. His reduced credibility introduces a fresh kind of instability — not about what has happened, but about what could feasibly occur based on unpredictable triggers. When tariff policies are proposed off-script and broad market risks are brushed aside from podiums, it doesn’t create clarity, especially for pricing models relying on tight macro-political correlations.

    So, in the coming sessions, we should look for moments when headline noise appears mispriced by short-term flows, rather than depend on solid directional conviction. When policy remains ambiguous and confidence in leadership figures erodes, our focus tends to shift to short-duration setups, with smaller exposure, while volatility pricing becomes a more useful signal than longer-term technical levels.

    Where uncertainty feeds into daily price action, the best edge often comes from observing how quickly the market adjusts to unexpected narratives — not from anticipating them. Traders should consider setups that isolate short bursts of movement, place emphasis on timing over trend, and remain aware of rising skew in open interest.

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