The cryptocurrency market experienced a sudden drop on Monday April 7 because Donald Trump’s aggressive tariff measures created worldwide market uncertainty. Bitcoin took the worst hit among all cryptocurrencies when it dropped 7.67% to reach $76,947.87 as investors moved to safer digital assets because of increasing market uncertainty.
Other major cryptocurrencies followed suit. Ethereum dropped 14.54% to $1,545.19, XRP fell by 17.02% to $1.76, Solana declined 15.02% to $101.79, and Dogecoin slipped 15.56%, trading at $0.1412. The market experienced a massive crash because investors became convinced that another “Black Monday” event was happening in both crypto and traditional financial sectors thus increasing market volatility.
The current macroeconomic instability has caused traditional financial markets to show stronger correlation with cryptocurrency values. The sudden drop of Bitcoin below $80,000 revealed a major change in the market according to Avinash Shekhar who serves as CEO of Pi42. The crypto market lost more than $160 billion worth of value during this one-day period.
The CoinMarketCap reported that the worldwide cryptocurrency market capitalization decreased by 6.59% to reach $2.5 trillion. The Nasdaq Composite dropped more than 5.8% while India’s Sensex and Nifty experienced significant declines during this time.
The widespread market decline stems from investors becoming increasingly fearful about economic instability which triggered mass selling of cryptocurrencies and stocks.
