Bitcoin dropped below the $78,000 mark on April 7 as global financial markets reacted to President Donald Trump’s new tariffs. The move triggered widespread selling across risk assets, including cryptocurrencies.
At 7 am AEST on April 7, Bitcoin traded at $78,938. The price was still down 5.69 per cent over the previous 24 hours, according to CoinMarketCap.
Massive Liquidations and Volatility
The leading cryptocurrency briefly fell as low as $77,077 during early trading in Singapore. This marked a seven per cent intra-day decline. CoinGlass reported $247 million in long liquidations in Bitcoin positions over the past 24 hours.
Figure 1: Fall in Bitcoin’s market price
Ether saw $217 million in long liquidations during the same period. Total long liquidations across cryptocurrencies reached approximately $745 million. This represented the highest daily total in nearly six weeks.
Crypto Market Cap Falls by $500 Billion
The global cryptocurrency market capitalisation dropped to $2.5 trillion on April 7. This marked a 6.59 per cent decline over the past 24 hours, according to CoinMarketCap.
Total crypto market trading volume surged 137.91 per cent to $101.84 billion. Stablecoins accounted for 93.84 per cent of that volume, with Tether reaching $95.57 billion.
Tether’s trading volume surpassed that of Bitcoin. The stablecoin’s market cap stood at $144.18 billion.
Figure 2: Major crash in global cryptocurrency market capitalisation
Altcoins Record Sharp Declines
Ether dropped 12.10 per cent to $1,590.06 by April 7. This placed the token at its lowest level since October 2023. Its market cap reached $191.88 billion, with trade volumes totalling $24.77 billion.
Solana fell 11.44 per cent to $106.53. Its market cap was $54.91 billion, and daily trading volume hit $4.25 billion.
XRP sank 11.4 per cent to $1.9033. Cardano, Polygon and other altcoins also lost more than 10 per cent each.
Dogecoin dropped nearly 13 per cent. The meme token $TRUMP fell 15 per cent to $7.87, reaching a record low.
Bitcoin’s Dominance Increases
Bitcoin’s market dominance increased by 0.57 per cent to reach 62.52 per cent. Its market capitalisation stood at $1.56 trillion. Trading volume reached $40.97 billion over the previous 24 hours.
Despite its decline, Bitcoin continues to lead the market by capitalisation and influence.
Global Sell-Off After Tariff Announcement
Trump’s decision to impose broad tariffs on all imports shocked global markets. His administration also added custom duties for major trading partners.
Investors responded by pulling capital from riskier assets, including equities and digital assets. Equities suffered their worst decline since 2020, wiping out trillions in value.
According to S&P Dow Jones Indices, global stocks lost $7.46 trillion over two sessions. U.S. markets accounted for $5.87 trillion of that loss. Other major markets lost $1.59 trillion.
Traders Brace for Black Monday
Market sentiment deteriorated over the weekend, with traders fearing a repeat of the 1987 Black Monday crash. Increased selling pressure raised the likelihood of a deeper correction in global markets.
Crypto markets, which trade continuously, began to slide during the Asia session. Bitcoin traded above $80,000 for most of 2025 before dipping sharply over the weekend.
It now stands 28 per cent below its January all-time high.
Whale Activity Sparks Fears
Market watchers noted a major transfer of Bitcoin to exchange Kraken. The move totalled nearly $160 million worth of coins.
Such activity typically precedes large-scale selling, adding pressure to already fragile sentiment.
Correlation With Risk Assets Strengthens
Bitcoin, often compared to major tech stocks, typically reflects broader risk appetite. It had outperformed global equities the previous week, holding near $82,000–$83,000 even as markets tumbled.
This time, however, the cryptocurrency joined the sell-off. Risk-off sentiment dominated markets globally.
Investors fled speculative assets in favour of safe-haven assets like the Japanese yen and gold.
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Expert Views on the Sell-Off
Sean McNulty, head of APAC derivatives at FalconX, said the derivatives market showed signs of continued pressure. “Options markets suggest the selling pressure may continue with the skew for puts picking up considerably,” McNulty told Bloomberg.
He identified key support levels at $75,000 for Bitcoin and $1,500 for Ether.
Cosmo Jiang, general partner at Pantera Capital, said macroeconomic triggers were currently in control. “Macro is driving the action right now. The tariff-driven pullback is idiosyncratic and not because of deeper issues in our economy,” Jiang said.
“Just like it was artificially injected in, so too can it be taken out after the Trump administration feels it has won concessions from other countries,” he added.
Crypto Market Faces Increased Risk Aversion
Cryptocurrency markets showed signs of increased correlation with traditional risk assets. Market participants treated digital assets like equities, selling them during periods of heightened uncertainty.
DeFi volumes remained low relative to the total. DeFi accounted for 5.91 per cent of total daily crypto market volume, totalling $6.02 billion.
Outlook for Crypto Markets
Absent a crypto-specific catalyst, digital assets may continue to mirror equities. Traders will watch for further fallout from Trump’s tariffs and the global response.
Market observers anticipate continued volatility across asset classes. Any further equity market decline could cause additional crypto losses.
Final Thoughts
Bitcoin’s fall below $78,000 underscores the rising influence of macroeconomic events on crypto markets. Global financial turbulence, led by trade policy shifts, has dragged cryptocurrencies into broader market uncertainty.
The total market capitalisation drop, heavy liquidations, and sharp altcoin declines highlight the scale of the reaction. Until global trade tensions ease, risk assets may remain under pressure.
