Reasons for Today’s Crypto Market Crash (April 7, 2025):

1. Global Trade Tensions:

U.S. President Donald Trump announced new tariffs, sparking fears of a trade war.

Stock markets reacted sharply, with the S&P 500 falling 3.3% and the Nasdaq dropping 4%.

Negative sentiment spilled over into crypto as investors pulled out of riskier assets.

2. China’s Retaliation:

China responded with retaliatory tariffs, escalating global uncertainty.

This triggered institutional margin calls and forced liquidations, especially for firms exposed to crypto.

3. Massive Liquidations:

Over $1.2 billion in crypto leveraged positions were liquidated in 24 hours.

Bitcoin dropped below $77,000; altcoins saw even steeper losses.

This rapid unwinding of positions led to further panic selling.

4. Investor Sentiment Shift:

Cryptocurrencies are not acting as a safe haven amid economic instability.

Many investors are temporarily exiting the market due to volatility.