Bitcoin fell sharply on April 7, dropping nearly 7% to a three-week low of $77,077.
The decline occurred days after U.S. President Donald Trump announced massive new import tariffs, which sparked concerns about a new trade war and a slowdown in the world economy. The crypto market initially showed some resilience last week, with traders speculating that Bitcoin might act as a “safe haven” as tech stocks slumped. But by Sunday night on Apr. 6, that narrative had flipped.
As U.S. stock futures opened in early Asia hours, markets turned red. The Nasdaq 100 contracts fell 5% and both the S&P 500 and Dow Jones futures each dropped more than 4%. Japan’s Nikkei 225 sank 6%, Australia’s ASX 200 fell 5%, and South Korea’s Kospi dropped 4.4%, as per Yahoo Finance data.
Bitcoin followed, crashing alongside the stock markets. According to Coinglass data, nearly $778 million in long crypto positions have been liquidated in the past 24 hours, marking the largest wipeout in nearly six weeks. Other major crypto assets also suffered, with Solana (SOL) plunging to as low as $107 and Ethereun (ETH) falling to $1,538, its lowest since October 2023.
Trump’s new policy imposes a 10% tariff on the majority of imports, with even higher rates for specific nations, such as 34% on Chinese imports and 20% on EU goods. Financial markets have been alarmed by the aggressive move, and investors are preparing for prolonged economic instability.
As the markets reeled, “Black Monday” began trending on X, with users referencing the infamous 1987 crash when the Dow Jones Industrial Average plunged 22.6% in a single day, the largest one-day percentage drop in U.S. stock market history.
Hedge fund billionaire Bill Ackman, in an Apr. 7 post on X, warned of an “economic nuclear winter” if Trump’s policies continue. “We will severely damage our reputation with the rest of the world,” he posted.
Sentiment has also soured in crypto circles. The Crypto Fear & Greed Index slid 11 points to 23, reflecting “extreme fear.” Still, not everyone is bearish. BitMEX co-founder Arthur Hayes suggested in an Apr. 4 post on X that the turmoil could eventually drive more investors to Bitcoin as a hedge against centralized policies. Whether that breakout comes soon or not, Bitcoin’s resilience will be tested in the days ahead.
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