The total crypto market capitalization has contracted significantly, falling to $2.7 trillion from its December 2024 peak of $3.9 trillion, representing a 30% decline in total market value over roughly four months.

This downturn coincides with broader weakness in equity markets, both reacting to President Trump's April 2 announcement of sweeping tariffs on his self-described "Liberation Day" for the United States. With these tariffs set to take effect in the coming days, market uncertainty has prompted widespread risk-off behavior among investors across multiple asset classes.

Bitcoin has demonstrated resilience amid the market turbulence. Despite dipping to $78,500, alternative cryptocurrencies face steeper declines. This divergence in performance has pushed Bitcoin's market dominance to nearly 60%, a significant increase from earlier this year.

The pattern suggests a flight to perceived quality within the crypto ecosystem, with investors favoring Bitcoin's established status during periods of heightened market stress. Other crypto assets further down the risk curve have underperformed with the news. Smaller protocol tokens, NFTs, and other high-risk assets have seen prices drop significantly from last December’s highs. 

The correlation between crypto assets and traditional markets strengthened during this period of economic policy uncertainty. Investors continue to treat crypto assets as risk-on investments, reducing exposure alongside other speculative positions. Looking ahead, we’re watching to see if crypto continues to trade in tandem with equities or if Bitcoin's strength pushes crypto ahead.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。