Crypto market crash Bitcoin (BTC) took a significant hit on April 7, plunging to a low of $74,428—its lowest point since November 6, marking a steep decline of over 31% from its highest value this year.
Altcoins Face Steeper Losses
While Bitcoin’s decline was sharp, altcoins faced even tougher market conditions:
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Ethereum (ETH) dropped below $1,500, its lowest level since 2023.
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Berachain (BERA): -9.39%
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Zcash (ZEC): -18.05%
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Litecoin (LTC): -7.62%
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Maker (MKR): -13.66%
As investors exited their positions, the crypto market saw massive sell-offs.
What’s Causing the Crypto Market Crash?
The present collapse in cryptocurrencies reflects the larger problems in the stock market. Leading indices including the S&P 500, Nasdaq 100, and Dow Jones all dropped more than five%. The trade war started by Donald Trump is essentially driving these declines. Aiming at resolving the U.S. trade deficit, the former president’s strong stance on Liberation Day tariffs has driven recession chances higher and prompted analysts—including those from Goldman Sachs—increasing their recession odds.
Are There Signs of a Crypto Market Rebound?
Despite the downturn, there are two key factors suggesting that both stocks and Crypto Market could bounce back soon:
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Trade Negotiations with Key Partners
Trump has signaled an openness to negotiation, notably with Vietnam, which is reportedly ready to eliminate all tariffs on U.S. goods. Further negotiations are underway with Japan, a crucial trading partner. Japan is sending negotiators to the U.S., which could lead to significant deals, possibly including a purchase agreement. -
Federal Reserve’s Likely Response
History shows that in times of economic crisis, the Federal Reserve is likely to intervene. Traders expect five interest rate cuts this year, including an emergency reduction. According to a Bloomberg analyst:“The Federal Reserve may soon have no choice but to cut rates. Tariffs may raise inflation, but if economic growth falters, the Fed will prioritize stabilizing the economy.”
Could Bitcoin and Altcoins Surge Again?
When we go back to 2021, Bitcoin and altcoins shot to record highs following quantitative easing and interest rate reduction carried out by the Federal Reserve during the COVID-19 epidemic. Together with any trade deals, a similar Fed reaction might set off a market recovery.
