TechFlow news, March 31 — Ryan Lee, Chief Analyst at Bitget Research Institute, pointed out that as the market enters the second quarter, Bitcoin and Ethereum are facing dual tests from macroeconomic and technical factors. Currently, BTC is oscillating between $80,000 and $86,000, while ETH fluctuates between $1,600 and $2,200.
Earlier, Trump's proposed 25% tariff policy—set to take effect on April 2 against goods from Mexico and Canada—has triggered market concerns over a potential resurgence of trade wars. The correlation between crypto assets and traditional markets has increased, with BTC’s correlation to the Nasdaq reaching 0.67. Should U.S. equities weaken further, it could drag down the crypto market.
ETF fund flows are also diverging: BTC ETFs continue to attract capital, while ETH ETFs experience ongoing outflows, indicating institutional preference is tilting toward Bitcoin. Data shows that if ETH drops 20% from current levels, it could trigger over $336 million in liquidations, primarily concentrated on DeFi lending platforms. Given ETH’s high reliance on leveraged protocols, this may lead to cascading sell-offs. $1,600 remains a critical support level; a break below could accelerate downward momentum.
