Bitcoin and Ethereum Face Dual Challenges Amid Market Shifts

According to BlockBeats, as the market enters the second quarter, Bitcoin and Ethereum are encountering both macroeconomic and technical challenges. Currently, Bitcoin is fluctuating between $80,000 and $86,000, while Ethereum is trading within the $1,600 to $2,200 range. U.S. President Donald Trump's proposed 25% tariff policy, set to be implemented on April 2 for goods from Mexico and Canada, has sparked concerns about a potential resurgence of trade wars. This has increased the correlation between crypto assets and traditional markets, with Bitcoin's correlation with the Nasdaq reaching 0.67. A potential downturn in U.S. stocks could negatively impact the crypto market. ETF fund flows are showing divergence: Bitcoin ETFs continue to attract capital, whereas Ethereum ETFs are experiencing outflows, indicating a shift in institutional preference towards Bitcoin. Data suggests that if Ethereum's price drops by 20% from its current level, it could trigger over $336 million in liquidations, primarily concentrated in DeFi lending platforms. Ethereum's high reliance on leverage protocols may lead to a chain reaction of selling pressure, with $1,600 being a critical support level. A breach of this level could accelerate its decline.