#TrumpTariffs

Trump's Tariffs or Weak Demand: What Caused the Collapse of the Cryptocurrency Market According to Experts

From April 6 to April 7, 2025, the cryptocurrency market experienced a sharp decline. In one day, Bitcoin dropped by over 10% — to levels below $75,000. Ethereum fell to $1,500, hitting new lows since March 2023. This led to the liquidation of futures positions of more than 441,800 traders amounting to $1.36 billion.

It should be noted that on April 2, 2025, U.S. President Donald Trump implemented a large package of customs tariffs, including mutual and basic tariffs. Most experts called this the main reason for the collapse of the cryptocurrency market. Chief Analyst at Bitget Research Ryan Li stated in a comment to Incrypted that Bitcoin and Ethereum entered a critical phase of price consolidation amid escalating macroeconomic tensions. According to him, the market became more volatile following Trump's statements about new tariffs and concerns about a possible trade war.

Additionally, Ryan Li added that the strengthening of the U.S. dollar and rising yields on Treasury bonds also contributed to the decline in the price of the first cryptocurrency.