The cryptocurrency market witnessed a significant downturn on April 7, 2025, with major altcoins, including Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and XRP, experiencing dramatic losses. The market as a whole plummeted over 13%, leading to over $1 billion in liquidations across various trading positions.
As Bitcoin (BTC) struggled to maintain its foothold, dropping below the $76,500 mark, Ethereum led the charge downwards, with its price falling more than 19% within a mere 24 hours, settling around $1,450. This sharp decline marks a staggering drop of over 60% in the past year, signaling deep market vulnerabilities.
Other altcoins followed suit with XRP, SOL, and DOGE each losing around 18-20%. The total amount liquidated during this sell-off reached $1.38 billion, primarily from long positions as traders anticipated upward price movements. This wave of selling was largely triggered by geopolitical factors, as rising tensions surrounding U.S. President Donald Trump’s new tariff policies created an atmosphere of uncertainty.
Trump’s tariff strategy includes imposing a 10% levy on most imports and even harsher rates on goods from China and Europe. This announcement sent shockwaves through the market, prompting widespread panic selling—not just in crypto but across stock markets globally. With markets in nations like China, Japan, and Taiwan experiencing severe losses, it’s clear that the ripple effects of these policies are being felt across various asset classes.
Adding to the turmoil, the Crypto Fear & Greed Index dropped significantly, indicating that investors are retreating from riskier assets. The market sentiment has shifted dramatically towards a state of extreme fear, raising questions about Bitcoin’s viability as a hedge in turbulent times, especially as it declined while precious metals such as gold appreciated in value.
Fed Chair Jerome Powell further complicated the landscape by hinting that the new tariffs could exacerbate inflation in the U.S., impacting economic stability. His remarks—coupled with the global market sell-offs—led analysts to believe that caution is warranted, as the road to recovery in cryptocurrencies will depend on improved macroeconomic conditions and clearer regulations.
In light of this market chaos, prominent industry figures like Georgii Verbitskii, founder of the crypto investor app TYMIO, and Slava Demchuk, CEO of AMLBot, suggest that the current sell-off is not the death knell for cryptocurrencies. They emphasize that the environment is volatile yet not hopeless, advocating for careful risk management and a focus on long-term fundamentals as critical to navigating these stormy waters.
As traders and investors brace for continued volatility, the key takeaway remains: moments of crisis often present opportunities, and with proper strategy, investors will bounce back in the face of uncertainty.
