Bitcoin sharply fell below $75,000 as Asian and Pacific stock markets opened on Wednesday morning, shedding 6% in a single day. Global financial markets are sinking under pressure from the US imposing a 104% tariff on Chinese imports.
The sell-off coincided with mounting fears that escalating trade tensions between the world’s two largest economies could derail global economic recovery.
Stock Markets Bleed Worldwide and Bitcoin Follows
In Asia, Japan’s Nikkei 225 plummeted nearly 4% at the open, while markets in South Korea, Australia, and New Zealand also posted significant declines.
Australian stocks opened 2% lower, wiping out gains from the previous session amid waning hopes for a US-China trade resolution.
The S&P 500 plunged 1.6%, reversing an earlier 4.1% gain and pushing the index nearly 19% below its February peak. The Dow Jones Industrial Average slipped 0.8%, while the tech-heavy Nasdaq dropped 2.1%.
The sharp crypto correction triggered nearly $400 million in daily liquidations, led by leveraged long positions.
Notably, Bitcoin’s long-short ratio flipped for the first time in weeks, with short positions now accounting for 55% of open interest—a clear sign of bearish sentiment overtaking the market.
Investors are quickly de-risking across asset classes, bracing for further volatility as the trade dispute escalates.
Bitcoin Long-Short Ratio Flips. Source: Coinglass
Trump’s additional 104% tariffs on China and the lack of diplomatic progress have intensified uncertainty, prompting traders to seek liquidity and shift to defensive strategies.
With Bitcoin often seen as a barometer of macro risk appetite, its decline underscores the market’s growing unease.
