Bitcoin fell sharply on April 7th, falling to nearly 7% to $77,077.
A few days after President Donald Trump announced a massive new import tariff, the decline occurred, which sparked concerns about a new trade war and a slowdown in the global economy. The Crypto market initially showed some resilience last week. Traders speculate that Bitcoin could act as a “safe shelter” when tech stocks fall. But by Sunday night, April 6th, the story had been turned over.
The market has turned red as US stock futures opened early in Asia. Nasdaq 100 contracts fell by 5%, with both the S&P 500 and Dow Jones Futures down by more than 4% each. Japan's Japan 225 sunk 6%, Australia's ASX 200 fell 5%, while South Korea's Kospi fell 4.4% according to Yahoo's financial data.
Bitcoin followed, crashing along with the stock market. Coinglass data shows that a long basement position, nearly $778 million, has been settled over the past 24 hours, marking its biggest wipeout in nearly six weeks. Other major crypto assets have also suffered, with Solana (Sol) at a low of $107 and Ethereun (ETH) at a low of $1,538 since October 2023.
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Trump's new policy imposes 10% tariffs on most imports, with even higher fees in certain countries, including 34% of Chinese imports and 20% of EU goods. Financial markets are wary of aggressive movements, and investors are prepared for long-term economic instability.
When the market got caught up, “Black Monday” started trending on X, with users referring to the infamous crash of 1987, when the Dow Jones Industrial Average plummeted 22.6% in one day, the largest daily percentage drop in US stock market history.
Hedge fund billionaire Bill Ackman warned in an April 7 post on X about a “economic nuclear winter” if Trump's policies continue. “We seriously hurt our reputation in other parts of the world,” he posted.
The country is 100% behind the president by modifying the global system of tariffs that put the country at a disadvantage. But business is a game of confidence, and confidence depends on trust.
President @RealdonaldTrump has raised the issue of tariffs to the most important geopolitical…
– Billackman (@billackman) April 6, 2025
Sentiment is also sour in cryptography circles. The Crypto Fear & Greed Index slid 11 points to 23 points, reflecting “extreme fear.” Still, not everyone is bearish. Bitmex co-founder Arthur Hayes proposed in a post on April 4th in X that the confusion could ultimately drive more investors to Bitcoin as a hedge against centralized policy. Whether that breakout will come soon or not, Bitcoin's resilience will be tested in the coming days.
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