Bitcoins Fall Below $75,000: Market Turmoil Amid Trade War Tensions

On the evening of April 6, the price of the leading cryptocurrency began to decline. At the time of writing, its value hovers around ~$74,950.

Within 24 hours, the price of digital gold has dropped by nearly 10%. Most of the top 10 altcoins by market capitalization faced even greater losses, with XRP down about 21% and Dogecoin holding a loss of around 19%. Ethereum couldn’t maintain the $1,500 mark, declining by approximately 18%.

The total market capitalization of cryptocurrencies fell by about 12.5%, bringing it down to $2.46 trillion. Bitcoin’s dominance has surpassed 60%.

The price of Bitcoin had previously surged to around $80,000, likely driven by rumors about the U.S. President’s willingness to postpone the introduction of «reciprocal tariffs» against major trading partners for 90 days.

However, users did not find direct confirmation of this information from the president’s advisor, Kevin Hassett, leading to Bitcoin’s drop to around ~$79,000.

The cryptocurrency market crash followed the opening of U.S. stock index futures markets on Sunday. The S&P 500 saw a loss of 4.6%, while the NASDAQ 100 experienced a decline of 5.5%.

The downturn in traditional assets accelerated with the opening of trading sessions on Asian exchanges. At the time of writing, the Nikkei index had decreased by 7.8%, and South Korea’s KOSPI fell by 5.6%.

According to media outlet The Kobeissi Letter, the U.S. stock market has been declining for 32 consecutive days, losing an average of $400 billion per trading session.

The free fall continues:
Today’s drop in U.S. stock market futures puts S&P 500 futures down -22% and in bear market territory.
The U.S. stock market has now erased an average of $400 billion PER TRADING DAY for 32-straight days.
Is it time to BUY stocks yet? (a thread) [pic.twitter.com/MMtYgQXhh2](https://t.co/MMtYgQXhh2)

On April 2, U.S. President Donald Trump announced new tariffs for trade partners, setting a minimum of 10% for all countries, effective April 5. «Reciprocal tariffs,» about half as much as those imposed on American goods by other countries, are set to begin on April 9.

The retaliatory tariffs for China will be 54%, for the EU 20%, Vietnam 46%, Taiwan 32%, Japan 24%, India 26%, and South Korea 25%.

Bitcoin reacted by dropping below $85,000, although it managed to remain above $80,000 in the following days, showing better performance compared to the stock market.

As the date for the «reciprocal tariffs» approached, expectations emerged that Trump might delay their implementation to allow trading partners to make counteroffers for a «deal.»

One would have to imagine that President [@realDonaldTrump](https://twitter.com/realDonaldTrump?ref_src=twsrc%5Etfw)’s phone has been ringing off the hook. The practical reality is that there is insufficient time for him to make deals before the tariffs are scheduled to take effect.
I would therefore not be surprised to wake up Monday…

«One thing is certain: Monday will be one of the most interesting days in our country’s economic history,» stated billionaire investor Bill Ackman.

In a statement on April 6, President Trump referred to the tariffs as “the only way to address” the trade deficit with China, the EU, and other nations. He also told reporters he did not intend to trigger a market sell-off, but «sometimes you have to take medicine to fix something.»

REPORTER: «Is there pain in the market at some point you’re unwilling to tolerate?» [@POTUS](https://twitter.com/POTUS?ref_src=twsrc%5Etfw): «I think your question is so stupid. I don’t want anything to go down, but sometimes you have to take medicine to fix something — and we have been treated so badly by other countries.» [pic.twitter.com/09QBmfqzYF](https://t.co/09QBmfqzYF)

After April 2, BitMEX co-founder Arthur Hayes expressed the view that the top cryptocurrency needs to stay above $76,500 ahead of the U.S. tax payment deadline on April 15. He believes this could help eliminate uncertainty and volatility caused by tariffs.

After Bitcoin retreated to around $75,100, the expert commented on his prediction — «missed.»

«Volatility is back, baby. I f***ing love this sh*t. It’s going to be a fun week,» he remarked.

Earlier, analyst and MN Trading founder Michael van de Poppe had also suggested that Bitcoin might retest $76,600 before shifting into an upward trend. Some have identified $80,000-$82,000 as a potential local bottom.

However, analysts at Glassnode expressed skepticism regarding Bitcoin’s stabilization above $80,000, as on-chain metrics did not reveal signs of a return to sustained growth.

In March, CryptoQuant CEO Ki Young Ju suggested that the bullish market for Bitcoin has concluded. He forecasted that prices would decline or remain sideways for the next six months to a year.

The expert confirmed his prediction based on Bitcoin’s realized capitalization chart. The cryptocurrency has entered a bear cycle, and even if selling pressure eases, a turnaround will take at least six months.

The #Bitcoin bull cycle is over — here’s why.
There’s a concept in on-chain data called Realized Cap. It works like this: when BTC enters a blockchain wallet, it’s considered a «buy,» and when it leaves, it’s treated as a «sell.» Using this idea, we can estimate an average cost… [pic.twitter.com/xDHRin8N1K](https://t.co/xDHRin8N1K)

“Short-term growth appears unlikely,” concluded CryptoQuant’s leader.

The cryptocurrency fear and greed index, after attempting to approach a neutral zone, plummeted to 23. This value indicates extreme fear among investors.

«Amid increasing caution regarding the pace and scale of the tariff implementation on April 2, risk assets, including Bitcoin, were affected by a ‘sell now, think later’ mindset,» said Peter Chang, head of research at Presto Research, in an interview with The Block.

In his opinion, future trends depend on three main factors.

LVRG’s research director Nick Rak noted that due to the stringent tariff policies of the U.S., traditional finance companies are navigating «rough waters,» attempting to strike a balance between the expectations of a prolonged trade war and Bitcoin’s volatility.

«This could lead to a sell-off of digital assets, which are significantly influenced by constantly changing market sentiments and the economics of their own ecosystem,» he stated.

Santiment observed that social media is buzzing with mentions of the «decoupling» of cryptocurrencies from stock markets. At the end of last week, digital assets reacted cautiously to China’s tariff response, which led to a decline in major indices like the S&P 500.

According to data from X, Reddit, Telegram, 4Chan, Farcaster, and BitcoinTalk, social media has been abuzz with mentions of crypto’s «decoupling» from stock markets. Following the S&P 500’s -10.5% combined losses on Thursday and Friday alone, traders are optimistic that… [pic.twitter.com/MH2I3fi7F4](https://t.co/MH2I3fi7F4)

«If cryptocurrency markets are indeed becoming less reliant on stock markets, it would be a reassuring sign. Historically, most major bullish cycles in digital currencies occurred when there was zero (not negative or positive) correlation between the two sectors,» experts from the analytical platform stated.

It is worth noting that by June, the cryptocurrency market could reach a local bottom, and further dynamics will be determined by the outcomes of negotiations between the U.S. and major trading partners regarding tariffs, as believed by Nansen.