Whales dump as China hits back

April 09, 2025

Reading time: 5 minutes

China’s revenge: BTC dips while whales dump

Key points:

  • China retaliates with 84% tariffs on U.S. goods, escalating trade war.

  • Bitcoin briefly dips below $76,000 amid global market turmoil and over $400M in liquidations.

News - China has fired back at the U.S. in the escalating trade war, announcing an 84% tariff on all American imports starting April 10. The retaliation comes immediately after a total of 104% hiked tariffs on Chinese goods by the U.S. Both moves have rattled global markets, dragging crypto into the crossfire.

The State Council Tariff Commission described the U.S. policy as "economic bullying" and a violation of international norms. As markets reacted, Bitcoin tumbled nearly 5%, briefly falling below $76,000 before stabilizing.

Massive liquidations, bearish sentiment - The crypto market saw over $400 million in liquidations within 24 hours, with long positions bearing the brunt. More than 140,000 traders were liquidated, per Coinglass. The long/short ratio flipped, with shorts now comprising 55% of open interest, signaling a bearish shift.

Traditional markets didn’t fare much better. U.S. indices like the S&P 500, Dow, and Nasdaq all slipped. In Asia, Japan's Nikkei 225 opened nearly 4% down, while Australia erased prior gains.

Safe-haven or risk asset? Bitcoin’s identity crisis - While Bitcoin is often dubbed "digital gold," recent volatility questions its haven status. Yet analysts suggest this may be a buying opportunity. "You wind up buying Bitcoin," said Bitwise CEO Hunter Horsley, noting its non-sovereign nature.

Some reports even suggest China and Russia are experimenting with Bitcoin for trade settlements. Meanwhile, institutional voices highlight Bitcoin’s maturing volatility profile, seeing it as a long-term hedge.

Whales react: Panic and accumulation - Whale behavior paints a mixed picture. Several large holders dumped assets to avoid liquidation, including one selling 5,094 ETH at a $40M loss. Conversely, net outflows from exchanges and on-chain large transactions hint at strategic accumulation.

With extreme fear gripping markets, Bitcoin could face more downside unless diplomacy resumes. Still, the volatility has only intensified its role in global finance—as both a barometer and battleground.

21Shares launches first Dogecoin ETP backed by Dogecoin Foundation

Key points:

  • 21Shares has launched a physically backed Dogecoin ETP on Switzerland’s SIX Swiss Exchange, ticker: DOGE.

  • It’s the first Dogecoin ETP officially endorsed by the Dogecoin Foundation.

News - Dogecoin just took a big leap toward institutional legitimacy. On April 9, 21Shares — one of the world’s largest crypto ETP issuers — launched the first-ever Dogecoin ETP endorsed by the Dogecoin Foundation. Listed on Switzerland’s SIX Swiss Exchange under the ticker “DOGE,” the exchange-traded product (ETP) offers regulated exposure to the memecoin known for its internet origins and surprising market resilience.

The ETP is 100% physically backed, with each unit representing actual Dogecoin holdings, and carries a management fee of 2.5%. It was developed through an exclusive partnership with the House of Doge, the corporate arm of the Dogecoin Foundation.

Duncan Moir, President at 21Shares, called the launch “more than just a financial product,” describing it as “a gateway to a cultural and financial movement.”

Why this ETP matters for Dogecoin - As the first officially endorsed ETP by the Dogecoin Foundation, the product lends credibility and a compliant investment vehicle for institutions. Jens Wiechers, co-executive director of the Foundation, said the move creates a “regulated path for institutions to join and expand the ‘Dogecoin is Money’ vision.”

Sarosh Mistry, Director-Elect at the House of Doge and CEO of Sodexo North America, added that institutional products like this will “empower new types of investors” and drive future growth.

Europe is leading the memecoin ETF race - The listing reflects Europe’s accelerating role in crypto innovation. Unlike the U.S., where Dogecoin ETFs are still pending SEC approval, European issuers like 21Shares and Valour are expanding altcoin ETP offerings. Analysts say this highlights a regulatory gap that may influence where institutional capital flows next.

Despite the milestone, Dogecoin’s price saw little movement — trading around $0.15 and down roughly 3% in the past 24 hours.

Kraken partners with Mastercard to bring crypto debit cards to UK & Europe

Key points:

  • Kraken will issue physical and digital crypto debit cards in partnership with Mastercard in the U.K. and Europe.

  • The cards will support everyday transactions in crypto and stablecoins at over 150 million global merchants.

News - Kraken has announced a strategic partnership with Mastercard to launch crypto debit cards in the United Kingdom and across Europe. The move will allow users to spend their crypto and stablecoins at more than 150 million merchants worldwide, both online and in-store. Customers can now join the waitlist, with the official rollout expected in the coming weeks.

The initiative is part of the broader Kraken Pay ecosystem, which debuted in January 2025. Kraken Pay supports more than 300 crypto and fiat currencies for global transactions and features tools like "Kraktag" — a unique identifier that enables users to send and receive payments without exposing personal account information. Over 200,000 users have already activated the feature.

Expanding crypto’s real-world utility - Kraken’s co-CEO David Ripley called the Mastercard collaboration a major step toward enabling crypto’s everyday use. “Our clients want to be able to seamlessly pay for real-world goods and services with their crypto or stablecoins,” Ripley said.

Mastercard, which has also partnered with MetaMask and Mercuryo, sees this latest initiative as part of its commitment to digital payment innovation. “We’re working together to unlock the true potential of crypto assets for everyday use,” said Mastercard’s Scott Abrahams.

As Kraken continues to pursue MiCA licensing in the EU, the debit card rollout may strengthen its foothold in Europe’s growing crypto payments ecosystem, closing the gap between digital assets and traditional commerce.

Argentina probes Milei’s role in $250M LIBRA memecoin meltdown

Key points:

  • Argentina’s Congress has launched a formal investigation into President Javier Milei’s alleged promotion of the LIBRA memecoin scam.

  • Over $250 million in investor losses and claims of insider influence have sparked a national and international outcry.

News - Argentina’s Chamber of Deputies has voted to open a formal investigation into the LIBRA cryptocurrency scandal, allegedly tied to President Javier Milei. In a heated special session on April 8, lawmakers approved three resolutions: the creation of an investigative commission, the summoning of top officials, and a request for information from the executive branch. The resolutions passed with 128 votes in favor and 93 against.

The LIBRA memecoin, which Milei touted on X in February, briefly surged to a $4 billion market cap before plummeting nearly 90%. Onchain data shows that over 86% of early traders suffered losses, with total investor damage surpassing $250 million.

Presidential promotion or political firestorm? - Critics claim Milei’s social media promotion of LIBRA lured in tens of thousands of investors, weaponizing his government credibility. While Milei later denied intentionally promoting the token—saying he simply “spread the word”—lawyers have filed fraud charges accusing him of participating in an “illicit association” with LIBRA’s promoters.

One reported message from Hayden Davis, a figure allegedly tied to the token, suggested payments to Milei’s sister in exchange for favorable posts. The claim adds fuel to the growing legal fire, with national and international probes now underway.

What’s next? - Summoned for questioning are key officials including Economy Minister Luis Caputo and Justice Minister Mariano Cúneo Libarona. Congress’ move parallels judicial investigations, with mounting calls for accountability.

While Milei’s administration defends its fiscal record and brushes off the probe as political theater, public trust continues to erode. For the President once hailed as a crypto trailblazer, the LIBRA fiasco may now define the darker side of political influence in digital finance.

Did you know?

  • No country currently recognizes Bitcoin as legal tender. While El Salvador and the Central African Republic previously adopted Bitcoin as legal tender in 2021 and 2022 respectively, both countries reversed the decision by early 2025. These rollbacks followed international pressure and shifting economic priorities, leaving no country with Bitcoin as official currency today.

  • Ethereum’s supply is no longer deflationary. Although Ethereum became briefly deflationary after the 2021 EIP-1559 upgrade, recent data from 2025 shows ETH issuance now outpaces burn rates. Reduced on-chain activity and the rise of Layer 2 networks have led to fewer base fees burned, returning Ethereum to an inflationary state.

  • Bitcoin's Lightning Network has reached over 5,300 BTC in capacity. The Lightning Network continues to grow as a scaling solution for Bitcoin. As of early 2025, its public capacity stands at approximately 5,358 BTC, enabling faster and cheaper BTC transactions, especially for micropayments and cross-border use cases.

Top 3 coins of the day

Pax Gold (PAXG)

Key points:

  • At press time, PAXG was trading at $3,083, reflecting a 2.73% increase over the last 24 hours.

  • The token recovered above its 9-day SMA, while the AO showed weakening bullish momentum.

What you should know:

PAXG posted a modest rebound after a volatile week, fueled in part by recent news of its upcoming listing on AscendEX. The price reclaimed ground above the 9-day Simple Moving Average, a development often seen as a short-term bullish signal. However, the Awesome Oscillator (AO) suggested waning momentum, with declining green bars pointing to reduced buying pressure after the rally. Still, the uptick in volume hinted at active interest—possibly from traders reacting to the exchange listing announcement. That said, bulls may need sustained volume and a fresh green AO bar to validate further upside. If momentum builds again, the $3,150 zone—recent swing high—could act as a resistance to watch. On the downside, the $3,000 level may now act as immediate support if another correction unfolds.

Pepe (PEPE)

Key points:

  • At press time, PEPE was trading at $0.00000630, reflecting a 4.13% increase over the last 24 hours.

  • The RSI remained below neutral, while the Parabolic SAR signaled ongoing bearish momentum.

What you should know:

PEPE managed to claw back some gains after tumbling in response to a major whale sell-off, where over 1 trillion tokens were reportedly offloaded. This uptick came amid increased trading volume, indicating some speculative buying interest at lower levels. Despite the brief recovery, the Parabolic SAR dotted lines hovered above the candlesticks, suggesting the downtrend remained intact. Meanwhile, the Relative Strength Index (RSI) hovered around 41, showing that the token had not yet broken out of its bearish momentum range. PEPE will need to overcome the psychological resistance near the $0.00000700 zone for a shift in sentiment. Until then, short-term rallies could face sell pressure from traders looking to exit on minor strength, especially in the wake of recent whale activity.

Ethereum (ETH)

Key points:

  • At press time, ETH was trading at $1,456, reflecting a 1.09% decrease over the last 24 hours.

  • The MACD showed growing bearish momentum, while the Parabolic SAR confirmed a continuing downtrend.

What you should know:

Ethereum extended its downward spiral after breaking below the $1,500 psychological support. This decline followed a notable whale capitulation, with one long-term holder reportedly cashing out after nearly 900 days, locking in a ~$27 million profit. The broader macroeconomic jitters, including Trump’s aggressive tariff rhetoric, added further downside pressure on risk assets like ETH. On the charts, the Parabolic SAR dotted lines hovered firmly above the price candles, signaling an entrenched bearish trend. The MACD indicator widened its bearish gap, with no signs of a crossover, reinforcing the negative outlook. Volume also picked up during the recent dump, indicating panic selling and potential long-term liquidation. If the current momentum holds, ETH may test the next key support near the $1,350–$1,300 range. On the flip side, any short-term relief bounce could struggle near the $1,580 level, where sellers previously regained control.

How was today's newsletter?

Login or Subscribe to participate in polls.