Crypto collapse: Bitcoin, Ethereum, Solana nosedive as global markets react to Trump's tariffs
Bitcoin fell as much as 7% to $77,077 during early morning trading in Singapore, according to Bloomberg. Ethereum, the second-largest digital currency, plunged to $1,538—marking its lowest intra-day level since October 2023.
The cryptocurrency market on Monday (April 7) witnessed a sharp downturn, as digital assets reeled from renewed global trade tensions sparked by Donald Trump's sweeping tariff announcements. The sell-off began in early Asian trading hours and continued to deepen as uncertainty spread across financial markets.
Bitcoin and Ethereum lead the decline:
Bitcoin fell as much as 7% to $77,077 during early morning trading in Singapore, according to Bloomberg. Ethereum, the second-largest digital currency, plunged to $1,538—marking its lowest intra-day level since October 2023. It is reportedly said that over $745 million in long positions were liquidated within 24 hours, the highest in nearly six weeks.
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While Bitcoin managed to regain some ground by 7 am IST—hovering around $78,938—it was still down 5.69% in the past 24 hours. Its market cap stood at $1.56 trillion, with a 24-hour trading volume of $40.97 billion. Ethereum remained under pressure, falling 12.10% to $1,590.06, with a market cap of $191.88 billion.
Widespread losses across digital assets:
Other major cryptocurrencies also recorded significant declines. Solana tumbled 11.44% to $106.53, while Tether—though largely stable at $0.9994—saw the highest trading volume among all cryptos at $82.48 billion, even surpassing Bitcoin. The overall crypto market cap fell by 6.59% to $2.5 trillion. Daily trading volumes surged 137.91% to $101.84 billion, indicating frantic activity as investors responded to the rout.
Trump tariffs shake investor confidence:
The sharp slide came in the wake of Trump's aggressive push for global tariffs, which rattled investor confidence and drove markets lower globally. Sean McNulty, head of APAC derivatives at FalconX, told Bloomberg that options markets were showing signs of stress: "The skew for puts is picking up considerably." He also flagged $75,000 and $1,500 as key support levels for Bitcoin and Ether, respectively.
Cosmo Jiang, general partner at Pantera Capital, said macroeconomic factors were driving the plunge. "The tariff-driven pullback is idiosyncratic and not based on deeper economic weaknesses. Just as it was injected by policy, it can be reversed if diplomatic negotiations succeed," he noted.
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Stablecoin regulations stir debate:
Amid market volatility, stablecoins are also under the spotlight as lawmakers in the US debate two competing bills that could determine the sector's future. One House bill aims to ban interest payments on stablecoins, while a Senate version proposes limited exceptions. Experts say this could have profound implications for banks and financial stability.
"This is an existential threat to the traditional banking system," warned Arthur Wilmarth, professor emeritus at George Washington University. Meanwhile, Trump adviser Bo Hines has said the White House wants legislation passed by August.
Industry responds to regulatory pressure:
Reactions from the crypto industry have been mixed. Coinbase CEO Brian Armstrong argued against government interference, calling for equal treatment for banks and crypto firms. Hina Sattar Joshi of TP ICAP said stablecoins are becoming a vital link between digital and traditional finance, drawing significant institutional interest.
Tether emerges as a market force:
Tether's USDT continues to dominate with a market cap of $144 billion, generating $13 billion in profits this year through its investments in assets like Bitcoin, US Treasuries, and gold. Its growing influence has even drawn the attention of major banks. "If it's legal, we'll be in that business," said Bank of America CEO Brian Moynihan.
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