Crypto Markets Drop by $1 Trillion as U.S. Tariff Strain Triggers Worldwide Sell-Off
The crypto asset trading market just received a staggering blow. In a rapid turn of events, a staggering $1 trillion in market capitalization disappeared as the latest U.S. tariff updates caused turmoil across both conventional and digital markets. And no, this crypto downturn wasn’t some April Fool’s prank.
Bitcoin faltered below the $80,000 mark, stumbling over itself with a drop of more than 5% in just 24 hours, settling around $79,000. While that may not seem disastrous to newcomers, for seasoned investors, it felt hauntingly reminiscent of the distressing flash crashes of yore. What triggered this? An unfriendly tariff exchange between the U.S. and China that unsettled the wider economy—and crypto was caught up in it too.
To complicate matters, over $250 million in long positions were liquidated across major exchanges. In essence, numerous optimistic traders were wiped out as price declines outpaced their ability to respond. This was the largest liquidation episode since early March, underscoring the harsh reality that leverage can turn against you on such volatile days.
In the meantime, Ethereum didn’t fare much better. Ethereum fell below $1,600, losing over 14% of its value. It was not alone—most altcoins tumbled similarly. It’s becoming increasingly evident: even though crypto might not reside in the same vicinity as Wall Street, it still encounters the same turbulent weather.
Trump Tariffs Spark Crypto Collapse: Wider Economic Consequences
However, this was not merely a crypto issue; it was a global crypto market catastrophe. U.S. stocks plummeted for the third consecutive day. The S&P 500 declined by over 3%, the Nasdaq dropped 4%, and the Dow fell nearly 1,100 points. Not a rosy picture.
The situation looked even graver internationally. Germany’s DAX experienced a decline exceeding 6%, and Taiwan’s TAIEX nosedived nearly 10% after facing a severe 32% U.S. tariff. Meanwhile, the Hang Seng in Hong Kong plummeted over 13%, as investors around the world braced for potential global repercussions.
The concern? These tariffs extend beyond mere political theatrics—they might genuinely impair economic development globally. With investors already on edge, crypto happened to be caught in the crossfire along with everything else.
BTC USD Crypto holder Sentiment and Market Recovery Prospects
GLOBAL M2 IS SKYROCKETING#BITCOIN IS BOUND TO FOLLOW SOON
Ethereum IS ON TRACK TO BREAK $5,000
pic.twitter.com/NfZM7QUcMo
— Max Brown (@MaxBrownBTC) April 8, 2025
Here’s the interesting part: BTC has often been referred to as “digital gold”—a refuge when the situation becomes shaky. However, this week’s price movements are putting that claim under scrutiny. Instead of separating from the turmoil, it got pulled down along with the broader trading market.
Some still maintain that Bitcoin is unaffected by trade tariffs—it’s decentralized, operates without borders, and isn’t delivered in packages. But when panic grips the financial landscape, even digital assets cannot evade it. For now, BTC appears to act more like a tech share than a safe-haven asset.
The bottom line? Until geopolitical tensions ease, anticipate turbulent times ahead. Whether you’re invested in crypto, equities, or merely observing from the sidelines, brace yourself—this journey is far from complete.
DISCOVER: 20+ Upcoming Cryptos to Surge in 2025
Join The 99Bitcoins News Discord For Up-to-Date Crypto market Announcement
Key Takeaways
- Following Donald Trump’s Trade Tariff Signing on April 2, Global Markets Have Been in Chaos.
- To Date, The Total Trading market Cap Has Decreased by -$1Tn in Value.
- Bitcoin Has Broken Significant Price floor Below $80,000 and Ethereum has Dropped Under $1,600.
- Losses Extend Beyond Crypto, The S&P500 Fell -3% and NASDAQ -4%.
The post Crypto Markets Decline by $1 Trillion as U.S. Tariff Tensions Ignite Global Sell-off appeared first on 99Bitcoins.
