#CryptoCrash: Trump tariffs blamed for $232 billion market slump
Bitcoin, Ethereum and even the Donald's own $TRUMP token take a nosedive amid fears of a global trade war.
The crypto market has been rocked by a mass sell-off sparked by spooked investors liquidating risky assets in the wake of President Donald Trump's controversial tariffs.
Last week, Trump slapped countries around the world with new trade rules which will make it much more expensive to export to the US - the world's biggest consumer market.
The news sparked chaos in traditional markets. In Britain today, the FTSE 100 slumped 6% to a one-year low. European stocks also tumbled and Asian markets suffered a similar bloodbath.
Now the contagion has spread to crypto.
This morning (April 7, 2025), the global cryptocurrency market experienced a significant downturn, with the total market capitalisation decreasing by approximately 8.76% - a loss of about $232 billion which brought the market cap down to approximately $2.42 trillion.
The price of Bitcoin (BTC) fell to approximately $76,500 - a 7.71% decrease in just 24 hours - whilst Ethereum declined by 16.29% to reach a price of about $1,498.
Dogecoin (DOGE) was not spared, experiencing a decline of 16.73% to approximately $0.1377.
Even Trump's coin ($TRUMP) slumped by -15.91% to roughly $7.41, capping off a disastrous year which saw it plunge from a high of almost $80 in January.
Thing so bad in crypto that someone made a McDonalds hiring team YouTube account and is trolling bitcoin chat LOL 😂 absolutely brutally hilarious#cryptocurrency #CryptoCrash #bitcoin #btc #eth #Ethereum #dogecoin #peoe #xrp #xlm #doge #trump #cardano #cryptocrash #cryptomarket pic.twitter.com/WYUnM4WJsP
— David Bousquet (@Djbousquet) April 6, 2025
The market nosedive came amid significant sales of crypto assets, with reports indicating that approximately $985 million worth of positions were liquidated over the past 24 hours.
The downturn is largely attributed to escalating global trade tensions, particularly the announcement of new tariffs. These developments have led to broader market volatility and a sharp sell-off in both traditional and cryptocurrency markets.
As crypto crashed, the Fear and Greed Index plunged to a rating of 4 - indicating extreme fear.
Meanwhile, the US dollar strengthened as investors seek the relative safety of the global reserve currency during a period of geopolitical uncertainty.
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