Cryptocurrencies took a sharp nosedive on April 6, mirroring a dramatic slump in U.S. stock futures after the Trump administration intensified its aggressive tariff push worldwide.
Starting April 5, a blanket 10% tariff was enforced across all countries, with even steeper rates targeting major economies: 34% for China, 20% for the EU, and 24% for Japan.
Bitcoin (BTC) sank over 6% within 24 hours, briefly touching $77,883. Ether (ETH) suffered an even steeper drop of more than 12%, bottoming near $1,575. According to CoinGecko, the total value of the cryptocurrency market fell more than 8%, landing around $2.5 trillion.
Prices have shown slight signs of rebound since then. Bitcoin bounced back 1.4%, hovering near $78,500, and Ether recovered slightly to $1,594.
Meanwhile, market sentiment remains grim. The Crypto Fear & Greed Index posted a score of 23 on April 7 — deep in “extreme fear” territory.
Charlie Sherry, head of finance at Australian exchange BTC Markets, noted that Sunday trading is usually thinner, making large movements more impactful. “A few sizable sell-offs can drastically move prices when liquidity is low,” he explained.
Sherry pointed to the obvious catalyst: “President Trump’s renewed tariff push has sent shockwaves through global markets, with trade tensions escalating overnight.”
Despite the chaos, some in the crypto space remain cautiously optimistic. BitMEX co-founder Arthur Hayes suggested the turmoil might actually set the stage for a Bitcoin surge, as traditional markets falter.
Wall Street wasn’t spared either. U.S. stock futures plunged, with S&P 500 contracts sliding nearly 4%, according to Google Finance. The Nasdaq also slipped, and Dow futures dropped by more than 8%.
The Kobeissi Letter, a market analysis outlet, posted on X that S&P 500 futures are now in “bear market territory,” estimating that the stock market has erased an average of $400 billion in value per trading day over the past month.
MV Global’s Tom Dunleavy commented that if current futures levels persist, this could rank among “the worst three-day stretches in U.S. market history.”
Trump Digs in on Tariffs, Cites Trade Imbalances
President Trump stood firm on his tariff stance, saying in an April 6 post on Truth Social that the levies are meant to offset massive trade deficits with nations like China and the EU.
“The only way to fix this is with tariffs,” he wrote. “They’re already bringing in billions — it’s a beautiful thing to see.”
Speaking aboard Air Force One, Trump denied deliberately triggering a sell-off but added, “Sometimes you need strong medicine to make real change.”
Kevin Hassett, Director of the U.S. National Economic Council, said during an ABC interview that over 50 nations have already reached out to negotiate new trade terms. “They understand these tariffs are hitting them hard,” he remarked.
Treasury Secretary Scott Bessent also cautioned against retaliation in a recent interview with Bloomberg, warning that the current tariff levels are likely the ceiling — unless other nations escalate.
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