Bitcoin plunged nearly 7% on April 7, hitting a three-week low of $77,077, as fears of a global economic slowdown intensified following U.S. President Donald Trump’s sweeping new import tariffs.
The sharp decline comes just days after Trump announced the aggressive trade policy, which includes a 10% blanket tariff on most imports and steeper rates for specific countries. Initially, Bitcoin showed resilience, with some traders speculating it might serve as a safe haven amid slumping tech stocks. But that narrative unraveled quickly by Sunday night.
As U.S. stock futures opened during Asia trading hours, markets across the board turned red. The Nasdaq 100 futures plunged 5%, while S&P 500 and Dow Jones futures each fell over 4%. Asian markets followed suit — Japan’s Nikkei 225 dropped 6%, Australia’s ASX 200 sank 5%, and South Korea’s Kospi shed 4.4%, according to Yahoo Finance data.
Crypto markets mirrored the chaos. Nearly $778 million in long positions were liquidated in the past 24 hours, per Coinglass — the largest single-day liquidation in almost six weeks. Ethereum fell to $1,538, its lowest level since October 2023, while Solana dropped to $107.
Trump’s policy has alarmed global markets, with 34% tariffs on Chinese imports and 20% on EU goods, compounding investor concerns over a drawn-out trade war. On social media, “Black Monday” began trending on X, as users referenced the infamous 1987 crash when U.S. markets lost 22.6% in one day.
In a stark warning, hedge fund billionaire Bill Ackman said on April 7 that the U.S. risks entering an “economic nuclear winter” if Trump’s policies persist. “We will severely damage our reputation with the rest of the world,” he posted.
Meanwhile, sentiment in the crypto community has deteriorated. The Crypto Fear & Greed Index dropped 11 points to 23, signaling “extreme fear.”
Still, some remain optimistic. BitMEX co-founder Arthur Hayes suggested in an Apr. 4 post that the selloff could push more investors toward Bitcoin as a hedge against centralized monetary policy.
Whether that thesis plays out or not, one thing is certain — Bitcoin’s resilience is about to be tested like never before.
Stay updated with the latest crypto market developments on TheCoinInfo.
