Cryptocurrency Market Crashes 13.5% on Black Monday, $1.36 Billion Liquidated

The cryptocurrency market experienced a significant crash on April 7, now referred to as “Black Monday.” Within a 24-hour period, total liquidations exceeded $1.36 billion. This market-wide panic sell-off was triggered by economic uncertainties and rising tensions due to tariffs imposed by the U.S. President. The crash has sent shockwaves across the globe, highlighting that political influence is not the sole factor affecting the market.

Bitcoin was particularly hard hit, with its price falling below $77,000, marking a 13.5% decline from its price of $87,000 at the beginning of April. This sharp drop led investors to exit positions worth $392 million. Bitcoin’s price movement has been under consistent bearish pressure since reaching its all-time high of $109,356 in January. Despite predictions of a downturn, the magnitude of this crash was unexpected, as most investors anticipated Bitcoin to hold closer to $80,000. This crash marks one of Bitcoin’s worst starts to April, a historically significant month for risk assets.

Ethereum (ETH) closely followed Bitcoin’s downturn, plunging by 20% to $1,449. This price is the lowest since the late 2023 high. ETH also witnessed massive liquidations, amounting to approximately $328 million, as long-term holders were forced to exit. This number is significant, considering that Bitcoin’s liquidations lead Ethereum’s by just $64 million. Since December 2024, Ethereum has lost over 60% of its value. This crash comes at a time when the market is questioning Ethereum Layer-1’s viability in the presence of Layer-2 scaling solutions. The huge drop also highlights Ethereum’s tendency to react during periods of increased volatility. Analysts have predicted that if not reversed soon, the bearish momentum will take ETH to $647.

Altcoins like Solana (SOL) and XRP were also affected by the ‘Black Monday.’ Both tokens saw a 14% decline in their value. Investors rushed to liquidate their positions, with over $80 million in combined selloffs seen for these coins. Solana’s price drop indicates that mid-cryptocurrencies are at higher risk of value loss during market fluctuations. XRP’s decline comes at a time when it was already battling several issues related to compliance and acceptance. The ‘Black Monday’ also impacted other popular altcoins like DOGE, which fell by 15%, and Binance, which dropped nearly 10%. Mid-cap and smaller tokens experienced losses of up to 20%, further worsening fears of a prolonged market crisis.

According to statistics, long-term holders of cryptocurrencies accounted for nearly 86% of all liquidations in the last 24 hours. This violent crash forced exchanges to liquidate leverage positions as traders failed to meet their margins. Such large-scale selloffs often signal extreme market stress, which expedites price declines. If the excess leverage is cleared, conditions for a rebound may appear soon.

While ‘Black Monday’ has left investors in a state of uncertainty, some experts believe that forced selling could potentially pave the way for recovery as excess leverages get cleared. However, with constant liquidations and economic tensions on the rise, this volatility may persist for a while. For now, the Bitcoin price remains below key support levels while Ethereum struggles to find its bottom. On the other hand, altcoins are grappling with steep declines in value. As the market awaits clarity on policies and economic relationships, traders are advised to exercise caution in these testing times.