Markets have crashed again after a sharp move by Donald Trump: he announced new global tariffs, and China responded symmetrically — from April 10, duties of 34% on all US goods will come into force. The consequences were immediate: within 24 hours, the cryptocurrency market plunged by more than $900 million. Investors are locking in losses en masse. At the center of the panic are Bitcoin and Ethereum.
New Wave of Tariff War
Donald Trump announced new global tariffs on Friday, which became the starting point for turbulence in financial markets. China responded with countermeasures, setting 34% tariffs on all US imports. The escalation of tensions undermined investor confidence and triggered a large-scale asset sell-off.
Trump continues to promote cryptocurrencies, supports friendly regulators, and advocates for digital assets. But even this couldn’t hold the market. Amid growing uncertainty, investors are reassessing their positions, and the largest cryptocurrencies are losing value.
Bitcoin Loses Safe Haven Status
After the announcement of new tariffs, Bitcoin lost more than 10% in a day and dropped below $78K. According to Coinmarketcap, its price fell 7,85% over the past day, reaching $76,861 — a key support level. Trading volumes surged by 220% to exceed $44 billion. According to Coinglass, BTC liquidations amounted to $344 million.
Ethereum suffered even more: its price fell 14,84% in the past 24 hours to $1.54K. The asset has lost more than 53% over the year. Investors fear further decline to the $1.1–$1.3K range, despite purchases by large holders.
The tariff introduction also affected other altcoins. Among the top 10, the biggest losses were:
- XRP dropped 16,76% below $1.8, with risk of further fall to $0.65
- Solana lost 15,03%, trading at $102
- Dogecoin fell 15,64% to $0.1414
In a single day, over $900 million in positions were liquidated — most of them long. One whale was liquidated at an ETH price of $1.65K from a position of 67,570 ETH ($106 million). Another is close to liquidation with 56,995 WETH ($90.8 million), collateralized for a DAI loan.
A New Form of Global Crisis
According to traders, this is one of the biggest market crashes in recent decades. Stock markets in China, Japan, Taiwan, the UK, and Germany dropped up to 10%. Nasdaq opened down 5.4%, and the S&P 500 lost 3.84%, making the past three days the worst since 1987.
Meanwhile, reports indicate that China is already discussing market stimulus measures to counter Trump’s tariffs.
This scale of crisis was previously seen only in October 1987, October 2008, March 2020, and now in April 2025. Economists are calling the current events a “new form of global crisis.”
Experts Reactions
Jeff Park, analyst at Bitwise, noted that Trump’s trade policy may trigger macroeconomic chaos and a short-term crisis but could accelerate Bitcoin’s adoption as a savings tool.
Forbes reports that more than a third of Wall Street executives oppose Trump’s policy.
Kalshi estimates the probability of a US recession in 2025 at more than 61%. Goldman Sachs has revised its Q4 US GDP growth forecast from 1,5% to 0,5% and raised the risk of recession to 45%.
Pershing Square CEO Bill Ackman suggested Trump may suspend the tariffs to buy time for negotiations. He predicted that Monday, April 7, will become one of the most dramatic days in US economic history.
Peter Schiff, a longtime crypto critic, said Bitcoin’s collapse was only a matter of time and slammed Trump for imposing tariffs.
“I thought the dumbest thing Trump did was announce the creation of a strategic digital asset reserve. I was wrong,” he said.
Amid ETH’s fall, Schiff also advised against following investment advice from the Trump family, recalling a well-known tweet by Eric Trump recommending Ethereum.
Among the few who remained calm was billionaire Mark Cuban. He advised against selling, stating prices would recover, though he admitted not knowing when. However, he later deleted his post, urging every market participant to conduct their own analysis in the current situation.
What’s Next
Meanwhile, StalkChain analysts recorded inflows into memecoins amid the market drop. On April 4, $9.6 million was sent to smart wallets, while $7.2 million was withdrawn — net inflow totaled $2.4 million. The biggest purchases were:
Assets being sold included JLP (-$720K), JTO (-$319K), and WIF (-$166K).
According to analysts, the BTC price has broken the key support at $81K and moved downward. Still, a rebound is possible under current conditions. Bulls already halted the fall once at $76.6K, but the market remains vulnerable. The RSI indicator on the weekly chart has fallen below 45 for the first time since early 2023, nearing 30 — historically signaling the start of a bear trend.
A bear market scenario is possible if BTC does not hold above current levels. With fear dominating the market and the Fear & Greed Index showing “extreme panic,” investors are shifting into wait-and-see mode.
Jack Dorsey, CEO of Block and co-founder of Twitter, stated that Bitcoin risks collapse if it remains only a store of value. He insists BTC must be used in everyday payments, or else its value may eventually decline.
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