Why is Crypto Crashing Today (4/7/25)?

Jakarta, Pintu News – Cryptocurrency prices plummeted as US stock market futures opened with a sharp decline on April 6, following the Trump administration’s decision to toughen its global tariff strategy.

Starting April 5, the Trump administration has imposed tariffs of 10% on all countries, with some countries subject to higher tariffs – including China at 34%, the European Union at 20%, and Japan at 24%.

Crypto Market Plummets: BTC and ETH Prices Drop

Bitcoin (BTC) is down more than 5% in the last 24 hours and is trading around $77,883. Meanwhile, Ethereum (ETH) slumped more than 12% in the same period and is at $1,575, according to data from CoinGecko (7/4/25).

Read also: 3 Cryptos Sold by Whales After Donald Trump’s Liberation Day Tariff Policy!

Not only that, the total crypto market capitalization also fell by more than 8% to $2.5 trillion on April 7, 2025.

At the same time, the Crypto Fear & Greed Index-which measures market sentiment towards Bitcoin and other crypto assets-showed a score of 23 in the last update on April 7, which is categorized as “extreme fear”.

Donald Trump’s Tariff Policy Shakes Up Markets

In a statement, Charlie Sherry, chief financial officer at Australian crypto exchange BTC Markets, said that this price drop is not surprising as global markets are generally more illiquid on Sundays.

“As a result, a few big sell-offs can have a disproportionately large impact and push prices down quickly,” he explains.

“There is no mystery behind the trigger: President Trump’s latest statement on tariffs has rattled macro markets, making global trade relations suddenly seem uncertain.”

However, some traders predict that a Bitcoin price spike could happen in the near future. BitMEX co-founder Arthur Hayes has also speculated that although the tariff policy is disrupting the market, it could trigger a Bitcoin price rally.

US stock market futures also opened in the red.

Futures related to the S&P 500 index fell nearly 4%, according to Google Finance. Meanwhile, the tech sector-dominated Nasdaq index also fell, and Dow Jones Industrial Average futures plunged more than 8%.

Trading information source The Kobeissi Letter mentioned in a post on platform X on April 6 that this drop puts the S&P 500 futures contract into “bear market territory,” adding that the US stock market has now lost an average of $400 billion per trading day over the past 32 days.

Read also: Bitcoin Price Freefalls to $77,000 Today (4/7/25): Crypto Liquidation Surge Reaches $590 Million!

Tom Dunleavy, managing partner at venture capital firm MV Global, stated that if “futures prices tonight stay like this,” then this could be “the worst three-day decline in US stock market history.”

Trump Administration Reaffirms Tariff Policy

Billionaire pro-crypto investor Bill Ackman speculated that US President Donald Trump could delay the implementation of tariffs to give other countries time to counter-offer or reach a trade deal.

However, in his April 6 statement on his platform, Truth Social, Trump emphasized his commitment to the tariff policy.

He said that the US has large financial deficits with China, the European Union, and many other countries, which he said can only be solved by tariffs.

“The only way to cure this problem is with TARIFFS, which have now brought tens of billions of dollars to the US. These tariffs are already in effect, and it’s a beautiful thing to watch,” he said.

In another statement to reporters aboard the presidential plane Air Force One, Trump emphasized that he had no intention of triggering a market sell-off, but added, “Sometimes, you do have to take medicine to cure something.”

Meanwhile, the Director of the US National Economic Council, Kevin Hassett, in an interview with ABC’s This Week program on April 6, said that more than 50 countries have contacted the president to negotiate new trade agreements.

Read also: Ethereum Price Crashes 12% Today (4/3/25): ETH Faces Declining Fees and Inflation!

“They do that because they realize that they also bear the burden of this tariff,” he explained.

US Treasury Secretary Scott Bessent, in an interview with Bloomberg on April 2, urged US trading partners not to take aggressive countermeasures.

He emphasized that the current tariffs are already at the “highest level” – as long as there are no retaliatory measures from other countries.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. Crypto plunges as Trump tariff ‘medicine’ brutalizes global stock markets. Accessed on April 7, 2025