Crypto Market Slides as Traders Brace for April Tariffs, Hot Inflation Data

The crypto market extended its losses on Friday, shedding billions in value as investors reacted to worsening economic data and looming trade policy changes.

Bitcoin (BTC) is down nearly 3% over the past 24 hours, trading below key support levels. Major altcoins such as XRP, BNB, and SOL have fallen between 4% and 5%, contributing to a 3.3% decline in the CoinDesk 20 Index (CD20).

Over $300 million in long positions were liquidated across centralized exchanges during the sell-off, while nearly $39 million in short liquidations were also recorded, according to CoinGlass.

The downturn coincides with investor anxiety surrounding upcoming reciprocal tariffs from President Donald Trump’s administration, set to take effect April 2. The mood soured further after Friday’s hotter-than-expected core PCE inflation data added pressure to risk assets.

Consumer sentiment data released earlier this week also pointed to trouble ahead, with future expectations plunging to levels not seen since the last recession.

While most of the crypto market reeled, gold-backed digital assets bucked the trend. Stablecoins like PAXG and XAUT rose 0.7% to trade above $3,100, pushing their combined market cap beyond $1.4 billion in March. Year-to-date, these tokens have surged over 18%, while BTC and the CD20 have declined 12.5% and 28%, respectively.

Investors appear to be rotating into safer crypto exposures as macroeconomic uncertainty clouds the short-term outlook.