Impact of Trump’s Tariffs Hits Crypto Market: Bitcoin and Ethereum See Sharp Declines
April 7, 2025 | By Drigraj Madheshia, Live Hindustan
The ripple effects of U.S. President Donald Trump’s global tariff war are now reverberating in the cryptocurrency market. After severely impacting stock markets worldwide, the heat from Trump’s tariffs has reached crypto exchanges, causing significant sell-offs in major cryptocurrencies like Bitcoin and Ethereum.
Crypto Market Sees Heavy Selling Pressure
As Asian markets opened on Monday, widespread selling was observed across the cryptocurrency landscape. Bloomberg reports that approximately $745 million (around ₹6,200 crore) worth of bullish positions were liquidated within the past 24 hours, marking the largest sell-off in nearly six weeks. The tariff-driven uncertainty has unsettled investors, fueling cautious sentiment in the market.
Bitcoin and Ethereum Prices Plummet
With the opening of the Singapore market, Bitcoin’s price plunged by 7%, falling to $77,077 (approximately ₹64 lakh). Meanwhile, Ethereum dropped sharply to $1,538 (around ₹1.28 lakh), hitting its lowest levels since October 2023. Other notable cryptocurrencies such as Solana and stablecoin Tether also experienced declines in value and trading dynamics.
Market Capitalization and Trading Volume Trends
The overall global crypto market capitalization fell by 6.59% over the past day, settling at about $2.5 trillion (roughly ₹208 lakh crore) as of April 7. Despite the drop in valuations, total trading volume surged by 137.91% to $101.84 billion (around ₹8.5 lakh crore). Stablecoins like Tether accounted for a significant portion of this volume, contributing $95.57 billion (93.84%) to the trading activity.
Bitcoin’s Market Share Shows Slight Increase
Interestingly, despite the price dip, Bitcoin’s dominance in the crypto market increased by 0.57% to 62.52%. At 7 AM on April 7, Bitcoin stabilized at $78,938 (₹65.8 lakh), down 5.69% from the previous day, with a market cap of $1.56 trillion and trading volume of $40.97 billion.
Ethereum’s price fell by 12.10% to $1,590.06, with a market cap of $191.88 billion. Solana also dropped 11.44% to $106.53, holding a market cap of $54.91 billion. Tether’s price remained stable around $0.9994 but exhibited a trading volume of $82.48 billion, more than double that of Bitcoin.
Experts Weigh In: Further Downturn Possible?
Market expert Sean McNulty warned that option market signals suggest the ongoing sell-off might continue in the near term. He identified critical support levels at $75,000 for Bitcoin and $1,500 for Ethereum, below which further declines could occur.
Cosmo Jiang, another analyst, attributed the current downturn to the tariff measures rather than fundamental economic weaknesses. He expressed optimism that once the tariff pressures ease, crypto markets could stabilize and potentially recover.
What Lies Ahead?
The cryptocurrency market appears caught in the crossfire of geopolitical trade tensions and investor risk aversion. With key digital assets like Bitcoin and Ethereum experiencing notable declines, traders and investors are closely monitoring tariff developments and market responses.
While the immediate outlook is cautious, experts suggest that the correction may be temporary if trade disputes find resolution. Until then, market participants should brace for volatility amid an uncertain global economic environment.
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