Bitcoin plunges Amid Global market Turmoil
On April 7, Bitcoin experienced a significant drop, falling nearly 7% to $77,077, its lowest in three weeks. This decline came after U.S. President Donald Trump announced new import tariffs, raising fears of a trade war and economic slowdown.
Initially, Bitcoin was seen as a potential “safe haven” as tech stocks fell.Though, by April 6, this narrative changed. As U.S.stock futures opened in asia, markets turned red. The Nasdaq 100 fell 5%, while the S&P 500 and Dow Jones futures each dropped over 4%. Major Asian indices also suffered, with Japan’s Nikkei 225 down 6% and Australia’s ASX 200 down 5%.
Bitcoin followed the downward trend, crashing alongside the stock markets. Coinglass data shows nearly $778 million in long crypto positions were liquidated in 24 hours, the largest wipeout in six weeks. Other major cryptos like Solana and Ethereum also fell sharply.
Trump’s new policy imposes a 10% tariff on moast imports, with higher rates for specific countries. This move has alarmed financial markets, leading to concerns about prolonged economic instability. The hashtag “Black Monday” trended on X,referencing the 1987 market crash.
Hedge fund billionaire Bill Ackman warned of an “economic nuclear winter” if Trump’s policies continue. He posted on X that such policies could severely damage the U.S. reputation globally. Despite this, some, like BitMEX co-founder Arthur Hayes, believe the turmoil could drive more investors to Bitcoin as a hedge.
The Crypto Fear & Greed Index slid to 23,indicating “extreme fear.” However, Bitcoin’s resilience will be tested in the coming days.
