Bitcoin and US stock markets faced significant declines on April 3, 2025, due to US President Donald Trump's announcement of reciprocal tariffs. The S&P 500 fell by 4.2%, marking its steepest decline since June 2020, while the Dow Jones and Nasdaq Composite also experienced sharp losses, collectively erasing around $1.6 trillion in market value. Bitcoin saw an 8% drop, with traders eager to see if bulls could defend the $80,000 support level amid growing recession fears. The overall crypto market also declined by 6.8%. Liquidations soared to over $573 million, affecting more than 200,000 traders, as high leverage levels surrounding Bitcoin's support raised concerns of further declines to $64,000-$65,000 if the key support is breached. Investors are left wondering if these oversold conditions might lead to a relief rally in the near term.

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