On April 7, Bitcoin experienced a significant drop, plummeting nearly 7% to a three-week low of $77,077.
This decline followed the recent announcement by U.S. President Donald Trump regarding sweeping new import tariffs, which raised alarms about a potential trade war and a global economic slowdown. The cryptocurrency market showed some resilience earlier last week, with traders speculating that Bitcoin could serve as a “safe haven” amidst falling tech stocks. However, by the night of April 6, this narrative had shifted dramatically.
As U.S. stock futures opened during the early hours in Asia, markets turned negative. The Nasdaq 100 contracts saw a 5% decrease, while both the S&P 500 and Dow Jones futures each fell by more than 4%. Japan’s Nikkei 225 dropped 6%, Australia’s ASX 200 fell 5%, and South Korea’s Kospi declined by 4.4%, according to financial data.
Bitcoin mirrored this downward trend, crashing alongside the stock market. Data showed that nearly $778 million in long crypto positions were liquidated within a span of 24 hours, marking the largest liquidation event in almost six weeks. Other significant cryptocurrencies also faced losses, with Solana (SOL) dropping to as low as $107 and Ethereum (ETH) decreasing to $1,538, its lowest level since October 2023.
Trump’s new policy imposes a 10% tariff on most imports and even steeper rates for certain countries, including a 34% tariff on Chinese imports and 20% on goods from the EU. This aggressive strategy has alarmed financial markets, prompting investors to brace for extended economic turmoil.
As markets plunged, “Black Monday” began trending on social media, with users recalling the notorious 1987 crash when the Dow Jones Industrial Average fell by 22.6% in one day, the steepest single-day percentage drop in U.S. stock market history.
Billionaire hedge fund manager Bill Ackman warned in a post on social media that the current trajectory could lead to an “economic nuclear winter” if Trump’s policies persist. “We will severely damage our reputation with the rest of the world,” he stated.
The mood within the cryptocurrency community also shifted negatively. The Crypto Fear & Greed Index fell by 11 points to 23, indicating “extreme fear.” However, not all responses were pessimistic. BitMEX co-founder Arthur Hayes suggested in a recent post that the ongoing turmoil could eventually lead more investors to Bitcoin as a hedge against centralized policies. Whether such a breakout occurs soon remains to be seen, as Bitcoin’s resilience will be further tested in the coming days.