Crypto plunges, financial markets brace for "Black Monday."

byCrypto Talks -
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The cryptocurrency market has surrendered to investor pessimism as the trade war initiated by the Trump administration shows no signs of easing.

Crypto market surrenders to tariff fears
Late on April 6th and early morning on April 7th, 2025, the cryptocurrency market experienced another sell-off as investors braced for further negative reactions from global financial markets following the U.S. administration's announcement of retaliatory tariffs under President Donald Trump's directive, along with subsequent countermeasures from other countries.

Bitcoin's price dropped nearly 8%, falling from $83,800 to $77,100, the lowest level since the March 11th dump to $76,600.

It was hoped that Bitcoin might decouple from global stock market fluctuations and reclaim its status as a safe-haven asset, but that did not happen.

Meanwhile, Ethereum has extended its nightmare streak, plunging by 15.5% in the past few hours to hit $1,537 — a level not seen since October 2023, and a 55% loss in value since the beginning of 2025.


A part of Ethereum's decline came from the liquidation of over $100 million in collateral by a whale on the Maker lending protocol, triggering an on-chain sell-off.

The red market is also spreading across top altcoins, with many major names seeing declines ranging from 5% to over 15% compared to 24 hours ago.

In the last 24 hours, $890 million worth of derivatives positions were liquidated in the crypto market, with 85% of them being long positions. The number of liquidated orders reached over 288,000.

The Crypto Fear and Greed Index dropped from 34 to 23 in just one day, signaling extreme fear among investors.

The Bitcoin Dominance Index has risen to 63.3%, the highest since February 2021, signaling the continuous decline of altcoin market share compared to BTC.

Stock markets brace for "Black Monday"
Reactions from the cryptocurrency market could serve as an early indicator of the "Black Monday" that global stock markets, particularly the U.S., are about to face following the announcement of retaliatory tariffs from the Trump administration.

Major economies like China and Canada have chosen not to concede to the U.S., instead retaliating, which is threatening to escalate the trade war to a new level of tension. President Trump had previously stated that he would respond to any country that resists. The focus is now on the EU, as the European Union has yet to announce its next move.

In an interview on Sunday, April 6th (U.S. time), President Trump maintained his tough stance with statements like:

"I do not intend to cause a stock market sell-off. But sometimes bitter medicine is needed to cure the illness."

"I will not make a deal with China unless we address the trade deficit. The trade deficits between the U.S., China, and the EU can only be resolved through tariffs."

"One day, people will realize that tariffs are great for America."

Trump's uncompromising statements have continued to fuel pessimism in financial markets. Japan's Nikkei Index dropped by 8.5% in this morning's session to its lowest level since October 2023, triggering its first circuit breaker since the COVID-19 dump in March 2020. Taiwan's leading stock index also fell by 9% in this morning's session. The Chinese stock market opened on April 7th with a further decline of over 9%.

The leaders of Japan and Taiwan have both issued statements expressing their readiness to renegotiate tariffs with the U.S. Japanese Prime Minister Shigeru Ishiba announced that he will soon make a trip to the U.S. for direct discussions on this matter.

Meanwhile, U.S. stock futures trading saw significant drops in shares of major corporations, signaling a "Black Monday" awaiting when the market officially opens this evening.

The prices of safe-haven assets like gold and silver reversed and started to rise as instability continued to escalate during the Asian stock market session on April 7th.

The probability of the U.S. economy entering a recession in 2025 on Polymarket reached 65% this morning, the highest level ever recorded.


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