Bitcoin Slides Under $75K as Global Panic Sends Crypto Market Into $200B Freefall

Published: April 7, 2025 | 7:11 AM UTC
By Prashant Jha | Edited by Insha Zia

The cryptocurrency market experienced a severe downturn on Monday, with total market capitalization decreasing by more than $200 billion, leading to significant sell-offs and liquidations across various digital assets. This crash has sent waves of concern through the crypto community and beyond as traditional equity markets also witnessed substantial declines driven by geopolitical tensions.

Market Collapse

Bitcoin (BTC), which had traded above $84,000 on Sunday, fell dramatically to a low of $74,500. The plunge was not isolated to Bitcoin; Ethereum (ETH) and many other altcoins saw their prices drop by double-digit percentages. The drop in crypto values corresponded with an overall downturn in global stock markets, where indexes in the U.S., Asia, and Europe plunged in response to rising geopolitical risks.

Trading in major markets such as Hong Kong and Taiwan was so affected that circuit breakers were triggered, halting trading temporarily to prevent further losses. The current environment of uncertainty has raised concerns among traders, mirroring fears in the broader economy.

Liquidation Effects

The magnitude of this crash was felt particularly acutely among leveraged traders, with a staggering $1.1 billion in leveraged positions liquidated in just 24 hours, as reported by Coinglass. Long positions faced the brunt of this sell-off, suffering losses of over $840 million. Specifically, Bitcoin long traders alone lost approximately $282 million, while short positions accumulated losses of around $62 million.

Ether traders were not spared either. Combined losses in leveraged Ethereum positions reached $297 million, featuring $252 million in liquidations of long positions, along with $42.5 million in short positions. The crash was starkly exemplified by the liquidation of one significant Ethereum wallet, losing more than 67,570 ETH valued at over $106 million as the price of ETH dipped below the $1,650 mark.

Geopolitical Tensions

The backdrop to this sell-off is marked by escalating trade tensions between the United States and China. Over the recent weekend, President Donald Trump announced new reciprocal tariffs, which drew swift retaliation from Beijing. Although some U.S. allies have sought to mediate, the White House appears unmoved by calls to ease the tariff measures. As a result, both crypto and equity markets reacted negatively, leading to widespread risk aversion among traders.

Experts cite that this increasing macroeconomic uncertainty, along with the Federal Reserve’s reluctance to lower interest rates, has contributed to a heightened cautious sentiment in the markets.

Bullish Sentiment Amidst Chaos

Despite the significant declines, some prominent figures in the cryptocurrency sector remain optimistic about future market performance. Arthur Hayes, former CEO of BitMEX, affirmed his bullishness, suggesting that Bitcoin’s potential low point was around $77,500 and encouraging investors to consider buying at this dip. In a post on social media, he emphasized that should Bitcoin drop below $76,500, he would reconsider his market predictions.

Charles Hoskinson, founder of Cardano, also expressed his belief in Bitcoin, projecting a target of $250,000 in the future despite acknowledging the current volatility. He encouraged patience, urging investors to remain steadfast in the long term.

Conclusion

The recent turmoil in the cryptocurrency market raises questions about future trading strategies and overall investor confidence. While some remain bullish and suggest buying opportunities in the downturn, many retail and institutional traders are grappling with substantial losses. As the market continues to react to both geopolitical developments and internal volatility, the coming days will be critical for cryptocurrency investors navigating this unpredictable landscape.

For further updates and analysis on the crypto market and its developments, stay tuned to our coverage.

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