Price Action and Liquidity Crisis

• Bitcoin plummeted to $102,000 before rebounding to $115,189, while Ethereum dropped to $3,749 then recovered to $4,159

• $125 billion in crypto valuations wiped out during initial reaction

• Record $19 billion liquidation event triggered cascade selling before market stabilized

Sentiment Shift: From Panic to Opportunity

• Initial panic interpreted as risk-off reaction to potential trade war implications

• Narrative evolved toward viewing crypto as inflation hedge against tariff-induced price increases

• Technical support at $110,000-$112,000 for $BTC emerged as accumulation zone

• BTC-$ETH ratio at 27.67 suggests potential altcoin strength building

Regulatory Tailwinds

• Trump administration's historically pro-crypto stance provides confidence amid uncertainty

• Recent House "Crypto Week" initiatives and clearer banking rules created favorable backdrop

• Market participants reframing tariffs within broader crypto adoption context rather than isolated threat

• Analysts suggest monitoring $114,000 (BTC) and $4,200 (ETH) as key resistance levels for continued recovery