Bitcoin Tumbles Below $80K as Trump Tariff Announcement Sparks Market Anxiety
Bitcoin experienced a sharp decline on April 7, dropping nearly 7% to a three-week low of $77,077, as investor sentiment was rattled by U.S. President Donald Trump’s announcement of new import tariffs. The move has raised fears of a potential trade war and broader economic slowdown, reversing initial Optimism that Bitcoin could serve as a ’safe haven’ amid tech stock volatility. Below is a detailed analysis of the market reaction and key factors driving the sell-off.
Bitcoin Drops Below $80K Amid Trump Tariff Jitters
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, sparking concerns about a new trade war and a slowdown in the world economy. Initially, the crypto market showed resilience last week with traders speculating that Bitcoin might act as a “safe haven” as tech stocks slumped. However, 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%. Major indices in Japan, Australia, and South Korea also saw significant declines. Bitcoin crashed alongside these traditional markets, indicating a reversal of its initial safe-haven status.
Bitcoin CME Futures Gap Lower After Trump Rules Out China Trade Deal
CME’s Bitcoin futures, a proxy for institutional activity, gapped lower on Monday, trading at $79,590 and quickly descending to $76,800, down 5.6% from Friday’s close of $84,250. The losses came amidst broader market declines, with Dow futures falling 900 points, Chinese stocks crashing, and Japanese equity markets slipping into lower circuit breakers. President Donald Trump’s statement on Sunday ruling out a trade deal with China contributed to the bearish sentiment, as JPMorgan, S&P Global, and Goldman Sachs increased the probability of a U.S. recession this year.
Crypto Crashing Today: Chinese Stock Market, Nasdaq, Hang Seng Index, Nifty 50 Plunge
The crypto market experienced a sharp decline today, with Bitcoin price USD dropping sharply in the last 24 hours. This reaction was attributed to US President Trump’s continued push for restrictive tariffs. The market reversed, wiping out over half a trillion dollars in value just weeks after a major rally. This sharp decline triggered massive liquidations, with Bitcoin alone facing $250 million in long positions wiped out.
’Black Monday’ Strikes the Crypto Market
The crypto market experienced a significant crash on April 7, 2025, similar to past ’Black Monday’ events in history. This downturn affected not only the crypto markets but also global stock markets, leading to consecutive drops of over 10%. The markets have recorded historic rarities, including previous crashes in October 1987, October 2008, and March 2020.
China Discussing Front-loading Monetary Stimulus Amid Trade Tensions
China is reportedly discussing front-loading monetary stimulus to counter the impact of President Donald Trump’s tariffs on the Chinese economy. Trump has stated that he won’t make a trade deal with China unless the trade deficit is solved, leading to financial market crashes, with Bitcoin falling below $80K. Goldman Sachs expects a total of 130 basis points in Fed rate cuts for 2025, up from 105 basis points late last week.
