Crypto Prices Plunge 8% as Trump Tariffs Rattle Markets
1min read Cryptocurrency prices experienced a significant decline as the US stock futures market opened sharply lower on April 6. This downturn coincided with the Trump administration's decision to double down on its global tariff strategy, imposing a 10% tariff on all countries starting April 5, with some facing higher rates, including China at 34%, the European Union at 20%, and Japan at 24%.
Bitcoin (BTC) saw a drop of over 6% in the last 24 hours, trading around $77,883, while Ether (ETH) shed over 12% in the same period, trading at $1,575. The total crypto market cap decreased by over 8% to $2.5 trillion. Prices have since recovered slightly, with Bitcoin rising 1.4% to $78,500 and Ether regaining $1,594.
Ask Aime: What is the impact of the US stock futures market's sharp downturn and the Trump administration's tariff strategy on cryptocurrency prices?
The Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, returned a score of 23 in its latest April 7 update, indicating extreme fear. Charlie Sherry, head of finance at an Australian crypto exchange, attributed the drop to the generally illiquid nature of global markets on Sundays, where a few large sell-offs can disproportionately impact prices. He also noted that President Trump’s recent tariff talk has rattled macro markets, causing uncertainty in global trade relations.
Some traders predict a potential Bitcoin breakout, with BitMEX co-founder Arthur Hayes speculating that while the tariffs are unsettling markets, they could result in a Bitcoin rally. The US stock futures market also opened down, with futures tied to the S&P 500 dropping nearly 4%, the tech-heavy Nasdaq losing, and the Dow Jones Industrial Average futures sinking by over 8%.
Tom Dunleavy, a managing partner at a venture capital firm, suggested that this could be the “worst three-day move for US stocks of all time” if “tonight’s futures hold.” Crypto-friendly billionaire investor Bill Ackman speculated that US President Donald Trump could postpone the tariffs to allow countries to make counteroffers or deals. In an April 6 statement on his social media platform, Trump reiterated his stance on tariffs, stating that they are solving the US’s massive financial deficits with various countries.
Trump also mentioned that he wasn’t intentionally trying to cause a market sell-off but acknowledged that sometimes “you have to take medicine to fix something.” US National Economic Council Director Kevin Hassett noted that more than 50 countries have reached out to the president to negotiate fresh trade deals, understanding that they bear a lot of the tariff. US Treasury Secretary Scott Bessent urged US trading partners against taking retaliatory steps, arguing that the current tariffs are at the high end of the number if they don’t add more levies in response.
