Bitcoin fell sharply on April 7, dropping nearly 7% to a three-week low of $77,077.
The decrease occurred days after U.S. President Donald Trump announced large new import taxes, which stoked concerns of a new trade war and a slowdown in the international economy.
The crypto market initially showed some resistance last week, with traders betting that Bitcoin might operate as a “safe haven” while tech stocks sank. But by Sunday night on Apr. 6, that story had shifted.
After the opening of U.S. stock futures in the early hours of Asia, the markets went into a red state. The Nasdaq 100 contracts experienced a decline of 5%, while the S&P 500 futures and Dow Jones futures each experienced a decline of more than 4%.
According to the data provided by Yahoo Finance, the Nikkei 225 of Japan plummeted by 6%, the ASX 200 of Australia fell by 5%, and the Kospi of South Korea fell by 4.4%.The stock markets followed suit, and Bitcoin followed suit, crashing along with them.
In the past twenty-four hours, nearly seven hundred and seventy-eight million dollars’ worth of long cryptocurrency positions have been liquidated, according to data provided by Coinglass. This represents the largest wipeout in nearly six weeks.
Ethereum reached its lowest point since October 2023, falling to $1,538. Other major cryptocurrencies, such as Solana, also experienced a decline, with the latter reaching a low of $107.
As part of his new policy, President Trump has imposed a tariff of 10% on the vast majority of imports, with even higher rates for certain countries, such as 34% on imports from China and 20% on goods from the European Union.
Investors are preparing for a prolonged period of economic instability due to the aggressive move, which has already alarmed them. Users on X began referring to the infamous crash that occurred in 1987, when the Dow Jones Industrial Average dropped 22.6% in a single day, which was the largest one-day percentage drop in the history of the United States stock market.
As the markets began to crumble, the term “Black Monday” began to trend on X. In a post that he made on X on April 7th, hedge fund billionaire Bill Ackman warned of an “economic nuclear winter” if Trump’s policies continue.
“We will cause significant harm to our reputation with the rest of the world,” he made the statement on his post.Additionally, sentiment has become more negative in crypto circles. The Crypto Fear & Greed Index plummeted 11 points to 23, suggesting “extreme fear.” Still, not everyone is bearish.
BitMEX co-founder Arthur Hayes suggested in an April 4th post on X that the turmoil might eventually lead more investors to use Bitcoin as a hedge against centralized policies. Whether that breakout happens soon or not, Bitcoin’s durability will be challenged in the days ahead.
