Leading cryptocurrencies dipped on Wednesday as investors weighed the market uncertainties of President Donald Trump's tariff-related announcements.

Bitcoin wobbled between the highs of $86,000 and $87,000 throughout the day as trading volume fell by more than 10% in the last 24 hours.

Leading cryptocurrencies saw a decline on Wednesday as investors digested the market implications of President Donald Trump's announcements regarding tariffs.

What Happened: Bitcoin encountered resistance at the critical levels of $86,000 and $87,000. It fell by 0.24% in the last 24 hours, trading at press time at $85,413.8.

The apex cryptocurrency showed a weekly increase of 3.30% but encountered a quarterly loss of nearly 6.70%, its worst performance since the Covid-19 outbreak during 2020.

Industry observers noted that Bitcoin's recent price action reacted more to macroeconomic triggers, and the uncertainty had caused short-term ripples in the crypto market.

Ethereum also remained largely stagnant, trading in a narrow range just south of the $2,000 mark. The second-largest cryptocurrency experienced an even steeper first quarter, sliding 39% year-to-date.

Long liquidations exceeded $113 million in the last 24 hours, a substantial amount compared to the bearish shorts.

Bitcoin's Open Interest rose marginally by 0.10% in the last 24 hours, while funds locked in Ethereum futures dipped 1.44%.

The percentage of Bitcoin futures traders positioned bearish on the cryptocurrency exceeded those betting on its price increase, suggesting that further downsides could be possible.

The market sentiment remained in the "Fear" zone, according to the Crypto Fear and Greed Index.

Top Gainers (24 Hour)

The global cryptocurrency market cap stood at $2.84 trillion, showing a decrease of 0.24% in the last 24 hours.

Stocks continued their downward trend on Thursday. The Dow Jones Industrial Average declined by 155.09 points, or 0.37%, closing at 42,299.70. The S&P 500 slid 0.33%, ending at 5,693.31, while the tech-focused Nasdaq Composite dipped 0.53% to close at 17,804.03.

Investors likely reacted to Trump's new 25% tariffs targeting foreign automakers.

Shares of domestic automakers like General Motors Co. (NYSE:GM) and Ford Motor Co. (NYSE:F) experienced significant drops, with GM shares plunging 7.36% and Ford shares sliding 3.88% during the session.

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Analyst Notes: CryptoQuant, a well-known blockchain analytics firm, observed that short-term holders who bought Bitcoin within the last week were in the green.

"The 1w-1m cohort's realized price is around $84,740, meaning if BTC dips towards this level, it could act as support," CryptoQuant added.

The firm stated that if BTC stays above this level, it will signal "strength in demand." Conversely, a move below could indicate a potential reversal.

Liquidation event of $359.7M in long positions"If BTC holds above the short-term realized price, it suggests strength in demand. A breakdown below these levels might indicate a potential reversal or correction." - By Amr TahaFull post ⤵️https://t.co/SW9e16kofW pic.twitter.

Daan Crypto Trades, a widely followed cryptocurrency trader, noted that Bitcoin's price action would continue to be "heavily" influenced by headlines, considering that Trump's tariff "Liberation Day" was approaching.

"Would not be surprised to hang around the mid-$80,000s for a while until that blows over," the trader predicted.

"Now that reserves have plateaued, it looks like investors are sitting on the sidelines," Martinez remarked.

$BTC This range breakdown & sweep might be a bit slower, but it's also on the back of the sharpest equities sell off since the Yen Carry Trade issues, which coincidentally also marked that last range sweep in August 2024.I think there was a lot of reason and opportunity to dump … https://t.co/uKAoGP7aDc pic.twitter.com/Qr6fjSJIwZ