The Crypto market has taken a punch to the fierce gut. The latest US tariff announcement sent shockwaves through both traditional and digital markets, causing a whopping $1 trillion market capitalization to disappear in an instant. No, this code crash was no April Fool’s Day joke.
Bitcoin stumbled itself, falling below the $80,000 line and slipping over 5% in 24 hours to around $79,000. If you’re new here, it may sound less devastating, but to a longtime owner, this felt creepyly similar to a gut-harmed flash crash of the past. Cause? It was a round trip between the US and China that surprised the wider economy, with a much more friendly tariff and China, with the code not getting a free pass.
Worse, a long position of over $250 million has been settled over major exchanges. Essentially, many bullish traders were wiped out as prices fell faster than they responded. This was the biggest liquidation event since early March and a brutal reminder that leverage could become your worst enemy on a day like this.
Meanwhile, Ethereum did not do that well. ETH slipped for under $1,600, ejecting more than 14% of its value. It wasn’t alone. Most altcoins followed like dominoes. It’s become clear. Even though Crypto doesn’t live in the same house as Wall Street, they still share the same storm clouds.
Trump’s tariffs cause a crash of the cryptocurrency: the impact of broader financial markets
However, this was not just a crypto crash issue, but it was a global market disruption. US stocks were tanked straight on the third day. The S&P 500 was soaked over 3%, the Nasdaq sank 4%, and the Dow dropped almost 1,100 points. It’s not great.
Things seemed to have gotten worse overseas. Germany’s DAX fell more than 6%, while Taiwan’s Taiex led almost 10% nose after being criticised for a brutal 32% US tariff. In Hong Kong, Hangsen fell more than 13%.
Fear? These tariffs are more than just a political stance and may actually suffocate economic growth around the world. And with investors already on the edge, Crypto happened to be in the fire line like everything else.
BTC USD Investors’ Feelings and Market Outlook for Recovery
Global M2 is exploding#bitcoin It’ll continue soon
ETH breaks $5,000 
pic.twitter.com/nfzm7qucmo
– Max Brown (@maxbrownbtc) April 8, 2025
Well, here’s the kicker. Bitcoin is often referred to as “digital gold.” But this week’s price action is to test that story. Instead of separating it from the chaos, it was dragged into the rest of the market.
Some argue that Bitcoin is not affected by trade tariffs. It is decentralized, cross borders and not shipped to wooden frames. But when fear holds over the financial system, even digital assets cannot be hidden. For now, Bitcoin is acting more like a tech stock than a banker asset.
Conclusion? Expect choppy water ahead until things get cooler geopolitical. Cryptocurrency, inventory, or simply looking from a bystander, this ride is far from here.
Discovered: 20+ Next Cryptocurrency Exploding in 2025
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Key takeout
The global market has been turmoil since Donald Trump signed trade tariffs on April 2nd.
So far, the overall crypto market capitalization has been valued at $100 million.
Bitcoin lost key support of over $80,000, and ETH fell below $1,600.
The losses were not exclusive to crypto, with the S&P500 down -3% and NASDAQ -4% down.
Crypto Post Crypto Markets lost $1 trillion as US tariff tensions first appeared in 99 Bitcoin.
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