The crypto market is turning deep red. In the past 24 hours, not only have altcoins been punished hard, as usual, but Bitcoin has also taken a beating.

The leading digital currency dropped to nearly US$82,000 in the interim, losing a key support line around US$85,000. However, this support line has been regained - Bitcoin is currently trading at over $86,000.

Yesterday's crash is mainly due to the tariff war announced by US President Donald Trump on imports from the European Union. There will be future 25 percent import duties on cars and other goods. US tariffs of 25 percent on goods from Canada and Mexico will also take effect in early April.

However, investors also feared disappointing quarterly earnings from Nvidia. Last night, however, the chip manufacturer exceeded prediction and announced a new revenue record. Thus, the world's most valuable company was able to put the uncertainty caused by the DeepSeek shock behind it once and for all and provided at least a sigh of relief in the stock and crypto markets. The futures of U.S. stock indices nevertheless fell slightly in Asian trading.

All in all, Bitcoin is still more than three percent in the red over the past 24 hours, and Ethereum more than five percent.

Some current outperformers in the crypto market were able to rise despite the turbulence. For example, Kaito AI, which seeks to offset human attention by value in the AI era, rose nearly 40 percent over the same period. Litecoin was the winner among the larger cryptocurrencies, rising more than seven percent.

As a result of the rapid sell-off, the Fear-and-Greed Index also collapsed, reaching a value of ten - a level last reached in June 2022. After the all-time high in 2021 of about $67,000, BTC plummeted to about $20,000 at the time. Thus, despite a correction of "only" about 25 percent in the leading cryptocurrency and positive fundamental developments, strong fear currently prevails in the crypto market.

Today, Thursday, investors look forward to the latest estimates of U.S. gross domestic product for the final trading quarter of 2024. On Friday, the latest US core inflation (PCE) figures for January will be released. These provide clues to future U.S. monetary policy and thus the outlook for risky assets such as BTC.