Bitcoin Plunges! Investors Dump Risk Assets Amid Rising Trade War Tensions

Bitcoin Plunges! Investors Dump Risk Assets Amid Rising Trade War Tensions

On Monday morning, April 7, 2025, Bitcoin and other digital assets plunged sharply alongside Asian equities, as President Donald Trump’s new tariff measures sent fresh shockwaves through global financial markets.

Bitcoin Hits One-Month Low
According to Bloomberg, Bitcoin fell more than 7% from Sunday night into Monday morning, hitting a low of $77,077.
Ether (ETH) also dropped to $1,538, its lowest since October 2023.
Coinglass reported that the total cryptocurrency market lost around $745 billion in the past 24 hours — the sharpest single-day drop in nearly six weeks.

Global Markets in Turmoil
- Dow Jones futures fell sharply after China’s tariff retaliation
- Japanese yen surged, signaling a flight to safety
- Investors are “de-risking,” selling off digital assets amid mounting uncertainty

Bearish Momentum May Continue
Sean McNulty of FalconX noted that options market activity suggests continued selling pressure. Key support levels are seen at $75,000 for BTC and $1,500 for ETH.
Meanwhile, Cosmo Jiang from Pantera Capital said the sharp decline was driven by macro-level shocks, not internal weaknesses in the crypto space:
“This isn’t a systemic issue — it’s a policy-driven reaction. Like any stimulus injection, it can be reversed if other nations show signs of compliance,” Jiang explained.