Bitcoin briefly fell below the critical $75,000 mark on Monday, reflecting growing investor anxiety as global trade tensions escalated. The world’s largest cryptocurrency was trading at approximately $74,600 at 09:00 GMT, marking a significant drop of more than 10% over the past 24 hours.
This sharp decline coincided with a broad sell-off in global financial markets, primarily triggered by the recent announcement of sweeping tariffs by U.S. President Donald Trump. The tariff package, which includes a 10% levy on all imports and heightened duties on major exporting countries like China, Japan, the European Union, and Vietnam, has raised fears of a global economic slowdown. In response, China retaliated with a 34% levy on U.S. products, intensifying concerns of a potential trade war that could plunge the world into recession.
Global Market Fallout
The ripple effects of these developments were felt across major financial markets worldwide. In Asia, Japan’s Nikkei 225 suffered a drastic fall of nearly 8%, marking its steepest decline in recent years. Meanwhile, Hong Kong’s Hang Seng Index plummeted 13.7%, and Taiwan’s Taiex recorded a record loss of almost 10%.
European markets were similarly impacted. Germany’s DAX index dropped 6.3%, while London’s FTSE 100 fell 6%, reaching its lowest point in a year. The pan-European Stoxx 600 also declined by 5.6%.
In the United States, futures trading reflected a grim outlook. S&P 500 futures fell 4.5%, Dow Jones Industrial Average futures dropped 4%, and Nasdaq 100 futures decreased by 4.1%.
Analysts warn that the escalating trade conflict could lead to a global recession, disrupting markets, supply chains, and consumer spending. Some have expressed concerns about the potential for a market crash reminiscent of the 1987 “Black Monday”, driven by recent U.S. trade policy developments.
CNBC host Jim Cramer voiced fears of a severe downturn similar to the 1987 crash, noting that without measures to reward countries adhering to fair trade practices, the market could see a dramatic decline akin to the three-day drop that led to the infamous 22% crash on a single Monday.
“We will not have to wait too long to know. We will know it by Monday,” Cramer stated.
Despite mounting pressure, President Trump defended the tariffs as necessary to address trade imbalances, stating, “Sometimes you have to take medicine to fix something.”
In a social media post, he reiterated his stance:
“Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A. They are already in effect, and a beautiful thing to behold. The Surplus…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 7, 2025
Bitcoin’s Death Cross Returns
Bitcoin’s dip below $75,000 comes amid a broader decline in the global cryptocurrency market, which saw its capitalization fall by about 10.58% within 24 hours, reaching $2.39 trillion. The market sentiment took a significant hit, as the Fear & Greed Index dropped to 23, signaling “Extreme Fear.” This marks the lowest sentiment level since early March, reflecting a stark shift from the bullish outlook seen earlier this year.
Tracy Jin, COO of the MEXC crypto exchange, cautioned that escalating trade tensions and retaliatory measures could lead to heightened volatility in the crypto markets. Jin forecasts that Bitcoin could dip to the $76,000–$78,000 range by the end of April, and potentially fall further to $52,000–$56,000 during the summer.
“Retaliatory tariffs, potential provocations, and verbal interventions will be an excellent basis for increasing volatility in the cryptocurrency market,” Jin told Barron’s.
The recent downturn also saw a wave of liquidations. Data from CoinGlass shows that Bitcoin experienced nearly $410 million in long liquidations over the past 24 hours, as traders who had bet on price increases were forced to liquidate to cover their losses.
Adding to bearish signals, Bitcoin has now formed a “death cross”—a technical pattern where the 50-day moving average crosses below the 200-day moving average. This pattern is often seen as an indicator of potential extended downtrends.
“#Bitcoin $BTC has just flashed a death cross as the 50-day SMA dipped below the 200-day SMA. This technical signal often precedes extended downtrends,” tweeted veteran analyst Ali Martinez.
#Bitcoin $BTC has just flashed a death cross as the 50-day SMA dipped below the 200-day SMA. This technical signal often precedes extended downtrends. pic.twitter.com/6EaX2fAnKK
— Ali (@ali_charts) April 7, 2025
Short-Term Outlook: Bearish Sentiment Persists
Although Bitcoin managed to climb back above $77,000 by press time, the short-term outlook remains cautious as global uncertainty continues to weigh on investor sentiment. Should the $75,000 support level break again, Bitcoin could test lower thresholds, with $70,000 emerging as a critical support line.
For now, the market remains on edge, awaiting more clarity on trade negotiations and the potential long-term impact of the new tariffs on global commerce. Until then, Bitcoin and the broader cryptocurrency market may continue to experience heightened volatility, as investors adopt a more risk-averse approach.
As the situation develops, traders and long-term holders alike are keeping a close watch on key support levels, as well as any signals from global policymakers that could sway the market sentiment either way.