Cryptocurrency values saw a significant decline as US stock futures began trading sharply lower on April 6, following the Trump administration’s reinforcement of its global tariff policies.
Starting April 5, the administration imposed a blanket 10% tariff on all countries, with certain nations facing steeper rates: China at 34%, the European Union at 20%, and Japan at 24%.
Bitcoin (BTC) fell more than 6% in the past 24 hours and was valued at approximately $77,883. Ether (ETH) experienced a more significant decline, dropping over 12% during the same period to trade at $1,575, according to CoinGecko. Overall, the cryptocurrency market capitalization decreased by more than 8%, settling at $2.5 trillion.
Since then, prices have rebounded somewhat. Bitcoin has increased by 1.4%, reaching $78,500, while Ether has climbed back to $1,594.
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Concurrently, the Crypto Fear & Greed Index, which gauges market sentiment for Bitcoin and other digital currencies, registered a score of 23 in its latest April 7 update, indicative of extreme fear in the market.
Commenting on the situation, Charlie Sherry, finance head at a prominent Australian crypto exchange, suggested that the downturn was expected given the generally low liquidity in global markets on Sundays.
“Consequently, a few significant sell-offs can exert a disproportionate influence, quickly driving prices down,” he explained.
“The underlying cause is clear: President Trump’s recent discussions about tariffs have unsettled broader markets, making global trade relations uncertain.”
Nevertheless, some traders are optimistic, anticipating a potential breakout for Bitcoin soon. Arthur Hayes, co-founder of BitMEX, has hinted that while market jitters persist due to the tariffs, they could also ignite a Bitcoin surge.
The US Stock Futures market opened with losses as well.
Futures related to the S&P 500 dipped nearly 4%, as reported by Google Finance. The tech-heavy Nasdaq also declined, and futures for the Dow Jones Industrial Average plummeted over 8%.
A trading resource indicated in an April 6 post that the drop in US stock market futures has placed S&P 500 futures in “bear market territory,” noting that the US stock market has erased around $400 billion per trading day on average over the last 32 days.
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Tom Dunleavy, a managing partner at a venture capital firm, remarked that if “tonight’s futures hold,” it might end up being the “worst three-day move for US stocks in history.”
Tariff Strategy Intensified
A crypto-friendly billionaire speculated that President Trump might delay the implementation of tariffs to allow countries to propose counteroffers or negotiate deals.
In a social media statement on April 6, Trump reaffirmed the tariffs, claiming that the US has significant financial deficits with China, the European Union, and other nations, which the tariffs aim to address.
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“The remedy for this issue lies in TARIFFS, which are already bringing billions into the USA. They are currently in effect and a sight to behold,” he stated.
He also told reporters aboard Air Force One that he did not intend to provoke a market sell-off, but mentioned that “sometimes, you have to take medicine to resolve an issue.”
In parallel, the director of the National Economic Council indicated in an April 6 interview that over 50 countries have contacted the president to pursue new trade agreements.
“They recognize that they bear significant portions of the tariff burden,” he noted.
US Treasury Secretary urged US trading partners in an earlier interview to refrain from retaliatory measures, asserting that “this represents the highest potential tariffs unless they seek to impose additional levies in response.”
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