Cryptocurrency prices saw a sharp decline, coinciding with a significant drop in US stock futures as the Trump administration doubled down on its global tariff strategy.
Starting 5 April, the US imposed a 10% tariff on all countries, with higher rates for specific nations: 34% on China, 20% on the European Union, and 24% on Japan.
In parallel, the Crypto Fear & Greed Index, which gauges sentiment for Bitcoin and other cryptocurrencies, plummeted to a score of 17 on 7 April—indicating close to extreme fear, according to CoinMarketCap.
Charlie Sherry, head of finance at Australian crypto exchange BTC Markets, noted that the drop was expected, as global markets tend to be less liquid on Sundays.
He said:
“As a result, a few large sell-offs can have a disproportionate impact, pushing prices down quickly. There’s no mystery behind the trigger: President Trump’s recent tariff talk has rattled macro markets, with global trade relations suddenly looking uncertain.”
US Commerce Secretary Howard Lutnick announced:
“There’s no postponing tariffs.”
Reciprocal tariffs are set to take effect at 12.01am ET on 9 April, with hopes for a delay diminishing and fears of global retaliation escalating.
A post by trading resource The Kobeissi Letter on X (formerly known as Twitter) highlighted that Goldman Sachs forecasts a significant 18.8% increase in tariffs following the April 2 "Liberation Day" announcements.
US stock futures opened sharply lower, with S&P 500 futures falling nearly 4%, according to Google Finance.
The tech-heavy Nasdaq also saw significant losses, and Dow Jones Industrial Average futures dropped by over 8%.
The Kobeissi Letter noted in a 6 April post on X that the decline has pushed S&P 500 futures into "bear market territory," with the US stock market losing an average of $400 billion per trading day over the past 32 days.
Tom Dunleavy, managing partner at venture capital firm MV Global, warned that if tonight’s futures trends hold, this could mark the "worst three-day move for US stocks of all time."
The total cryptocurrency market cap (TOTAL) and Bitcoin (BTC) experienced some of their most significant declines this year over the last 24 hours.
As concerns about a potential recession and the US economy's vulnerability to Trump's trade wars grew, the crypto market saw $743 million in long liquidations.
The total market cap dropped by $216 billion, falling to $2.37 trillion at the time of writing, largely due to the impact of trade tensions ignited by US President Donald Trump’s policies, which also weighed on global stock markets.
As fears of another "Black Monday" intensified, the market sentiment worsened, resulting in the significant liquidations.
Bitcoin faced a sharp setback, dropping 9.62% in the last 24 hours to $75,167.75, losing the crucial $80,000 support level and raising concerns among traders.
Bitcoin's ability to recover will depend on its response to the current market conditions.
Meanwhile, Ether also took a hit, shedding 19.42% and trading at $1,453.37, according to CoinMarketCap.
The broader crypto markets mirrored the declines in global risk assets, with the total market cap falling over 11%.
Tracy Jin, COO of MEXC Exchange, noted:
“The market is easily manipulated in its current state. This carries the threat of new disappointments… and this will call into question the status of Bitcoin as a safe haven asset, which may lead to an even sharper outflow of funds from the ETF.”
Jin suggests that a negative outlook seems increasingly likely, with Bitcoin potentially dropping to the "$52,000–$56,000 range" by summer.
She also predicts Ethereum may face even greater challenges, given structural issues that extend beyond tariffs.
As stock and crypto markets tumbled in response to Trump’s tariffs, the sharp sell-off prompted authorities to trigger circuit breakers—mechanisms that halt trading when markets drop precipitously.
These circuit breakers were activated in Taiwan, Japan, Australia, Singapore, and Russell Futures.
In the US, the S&P 500 employs a tiered system of circuit breakers: a 7% drop pauses trading for 15 minutes, a 13% drop triggers another 15-minute halt, and a 20% decline results in a full-day trading suspension.
However, the cryptocurrency markets lack such safeguards, leading to unchecked sell-offs, particularly when high levels of leverage are involved.
This absence of circuit breakers often exacerbates volatility, creating an environment where rapid declines can spiral further.
Billionaire investor and crypto advocate Bill Ackman has speculated that President Trump may delay the implementation of tariffs, allowing countries time to present counteroffers or negotiate new deals.
In a statement on 6 April via his Truth Social platform, Trump reaffirmed his commitment to the tariffs, arguing that they are necessary to address the US's significant financial deficits with China, the European Union, and other trade partners.
He pointed out:
“The only way this problem can be cured is with TARIFFS, which are now bringing tens of billions of dollars into the USA. They are already in effect, and a beautiful thing to behold.”
Trump further clarified his position during a press briefing aboard Air Force One, stating that while he was not aiming to spark a market sell-off, “sometimes you have to take medicine to fix something.”
Meanwhile, US National Economic Council Director Kevin Hassett shared in an interview with ABC’s This Week that more than 50 countries had already reached out to the president to negotiate new trade agreements.
He expressed:
“They’re doing that because they understand that they bear a lot of the tariff.”
On the diplomatic front, US Treasury Secretary Scott Bessent, in a 2 April interview with Bloomberg, urged US trading partners not to retaliate aggressively, emphasizing that “this is the high end of the number” for tariffs, provided no further retaliatory levies are introduced.
Hints of potential negotiations have emerged from Taiwan, Vietnam, Zimbabwe, and India, where officials have signalled a willingness to discuss better trade terms.
Taiwan’s President Lai Ching-te proposed eliminating tariffs entirely, removing trade barriers, and committing to increased investment in the US Similarly, Zimbabwe’s President Emmerson Mnangagwa suggested suspending tariffs on US goods in a swift reaction.
However, over 150 countries have yet to respond to President Trump’s "Liberation Day" tariffs, which are already causing global disruption.
Last week, China imposed a 34% tariff on $140 billion worth of US exports, marking the first major salvo in what traders anticipate could escalate into a larger trade war.
Meanwhile, stock markets have been hit, oil prices are falling, and treasury yields are dipping, signalling concerns over a potential recession.
Despite this, Bessent has urged trading partners to refrain from retaliatory measures, warning that the US would raise tariffs in response to further actions.
The European Union, which exported $606 billion in goods to the US in 2024 and faces a trade deficit of $236 billion, has indicated it is preparing countermeasures.
Analysts view the EU’s response as a key market-moving event.
In addition, reports suggest that China, Japan, and South Korea may join forces in responding to the tariffs, with China already having taken action.
Should Japan and South Korea follow suit, the combined impact could affect approximately $280 billion worth of US imports.
Mexico has pledged a “comprehensive response” to the tariffs, while Canada has also vowed to act, despite not being subject to the new 10% baseline tariff—though previous duties on both countries remain in place.
The past few days have felt like a calm before a storm, with most nations remaining silent following Trump’s tariff announcement.
This could indicate ongoing negotiations or preparations for retaliatory measures.
With tariffs now affecting 185 countries, markets brace for heightened volatility and the possibility of a full-scale global trade war.
Economist and vocal Bitcoin critic Peter Schiff recently claimed that the cryptocurrency market is "finally starting to crack" in response to Trump’s newly announced tariffs.
Schiff, who has long criticised both Bitcoin and Trump’s economic policies, condemned the president's decision, which has led to significant declines in digital assets and global equities.
Schiff remarked, taking a shot at the president's approach to both crypto and trade:
“I thought the dumbest thing Trump would do was establish a Strategic Bitcoin Reserve. I was wrong.”
As a founding member of Euro Pacific Asset Management, Schiff also pointed to the performance of the "Official Trump Meme Coin," which he noted was “leading the decline.”
The token, launched earlier this year, has fallen by 18.70% in just 24 hours, now trading at $7.38—over a 90% drop from its January 19 high of $73.43. h
Schiff, who has long warned against government involvement in crypto markets, expressed concern over the industry's apparent support for Trump’s policies, fearing that this could lead to widespread losses for retail investors.
The question now looms: Can cryptocurrency survive under this administration, or is this the beginning of its downfall?
The Vancouver Canucks' X account was hacked just before the NHL Draft Lottery and used to promote a fake cryptocurrency and deepfake Elon Musk video. Hackers also replied to fans to appear real, while the team worked with the NHL and X to regain control.
WeatherlyEthereum R1 launched as a new layer-2 solution without a token or central control, aiming to keep Ethereum scaling neutral and decentralised. It runs on donations and has sparked debate about whether token-free models could shape the future of Ethereum’s ecosystem.
WeatherlyYua Mikami, a popular Japanese celebrity, launched her meme coin, $MIKAMI, on the Solana network, raising over $1.5 million in just 50 minutes during the presale. The coin is designed as a fun, non-investment token with no fixed price, and contributors receive tokens based on their SOL contributions.
WeatherlyLjubljana, the capital of Slovenia, has overtaken heavyweight contenders like Hong Kong and Zurich to be named the world’s most crypto-friendly city in 2025.
XingChiChangpeng "CZ" Zhao, co-founder and former CEO of Binance, just revealed that Satoshi Nakamoto, the elusive creator of Bitcoin could be an AI that has travelled back from the future.
XingChiEl Salvador has stopped using public funds to buy Bitcoin as part of an agreement with the IMF. However, the country continues to grow its Bitcoin holdings through private sources.
AnaisRipple has decided against an IPO in 2025, citing its strong financial position and lack of need for external funding. Instead, the company is focusing on strategic acquisitions and long-term growth, such as its $1.25 billion purchase of Hidden Road.
WeatherlyThe small Italian town of Fornelli is unveiling Italy’s first Satoshi Nakamoto monument on 1 May 2025, funded by the local government. The village, known for its high Bitcoin adoption, is positioning itself as a crypto-friendly destination.
WeatherlyCardano founder Charles Hoskinson said Ethereum could become outdated in the next 10 to 15 years due to poor design choices and weak governance. He claimed its current systems are flawed and not strong enough to support future growth.
AnaisSam Altman, CEO of OpenAI, has praised Bitcoin as a global currency beyond government control. He called it a smart and important step towards changing how the world handles money.
AnaisCoincheck is now the first Japanese crypto exchange listed on the Nasdaq, raising substantial capital through its IPO. The company plans to use the proceeds for acquisitions, aiming to expand its presence in the U.S. and Japan's crypto markets.
AnaisMicrosoft shareholders overwhelmingly rejected a proposal to add Bitcoin to the company's balance sheet, with only 0.55% in support. The board expressed concerns about Bitcoin's volatility, despite acknowledging its potential as an inflation hedge.
WeatherlyPresident-elect Donald Trump has pledged to make the US a leader in cryptocurrency, declaring, “We’re going to do something great with crypto” after ringing the NYSE bell. But can he turn this promise into action or is it just rhetoric?
CatherineTaiwanese prosecutors are investigating the death of Miffy Chen, a leading crypto forensics expert, who died in a car crash on 4 December. Chen’s work helped law enforcement seize NT$9.3 billion in suspected illegal assets from 60 fraud cases this year. Her death prompts questions: was it an accident, or is there more to uncover?
KikyoThe American economy is divided between two contrasting visions: Joe Biden’s stabilising approach, focused on international cooperation and supporting the middle class, and Donald Trump’s bold reforms, driven by protectionism and tax cuts for the wealthy.
CatherineSEC Chair Gary Gensler has intensified scrutiny of Elon Musk, targeting Neuralink with a 48-hour settlement ultimatum. Musk responded with satire, portraying Gensler as a snail in a suit. Is this Gensler’s last move before his expected resignation?
KikyoThis initiative, funded by OpenAI and Microsoft, leverages nearly one million digitised books from Google Books to expand resources for AI training, advancing the use of public-domain literature in AI development.
CatherineWith TOMA’s launch just a week away, Telegram game Tomarket has pivoted from The Open Network (TON) to Aptos, a rival layer-1 blockchain. This unexpected move raises the question: is TON losing its edge?
CatherineOpenSea's Cayman Islands foundation has fuelled speculation of a token launch, with the NFT community hoping for an airdrop to reward early users. This comes amidst declining trading volumes and rising competition.
KikyoSuchir Balaji, a 26-year-old former OpenAI researcher, was found dead in his San Francisco apartment on 26 November, with authorities ruling it a suicide. Before his death, Balaji had been a vocal critic of AI companies' use of copyrighted material, raising concerns about the ethical practices of generative AI systems like ChatGPT.
Anais