On April 7, Bitcoin fell sharply by nearly 7%, hitting a three-week low of $77,077. The drop came just days after former U.S. President Donald Trump announced sweeping import tariffs, sparking fears of a new trade war and a global economic slowdown.

Earlier last week, the crypto market had shown some resilience — with traders speculating that Bitcoin could act as a “safe haven” amid a tech stock sell-off — but by Sunday night, the narrative had shifted. As U.S. stock futures opened during early Asian trading hours, markets turned red. Nasdaq 100 futures dropped 5%, while the S&P 500 and Dow Jones fell over 4%. Japan’s Nikkei 225 dropped 6%, Australia’s ASX 200 fell 5%, and South Korea’s Kospi dropped 4.4%, according to Yahoo Finance data.

Bitcoin followed suit, crashing alongside equities. According to Coinglass, $778 million worth of long crypto positions were liquidated over the past 24 hours — the largest wipeout in nearly six weeks. Other major cryptocurrencies also tumbled: Solana plunged 15.6% to $107, and Ethereum fell 15.1% to $1,538, its lowest since October 2023.

Trump’s new trade policy imposes a 10% tariff on most imports, with even higher rates on certain countries — 34% on Chinese goods and 20% on imports from the EU. The aggressive move rattled financial markets, with investors bracing for prolonged instability.

On social media platform X (formerly Twitter), the hashtag #BlackMonday started trending, referencing the infamous 1987 market crash when the Dow Jones Industrial Average dropped 22.6% in a single day — the worst one-day drop in U.S. history.

Billionaire hedge fund manager Bill Ackman warned on April 7 of an “economic nuclear winter” if Trump’s policies continue. “We will severely damage our reputation with the rest of the world,” he posted.

Sentiment has also darkened in the crypto space. The Crypto Fear & Greed Index dropped 11 points to 23, signaling “extreme fear.” Still, not everyone is bearish. BitMEX co-founder Arthur Hayes suggested in an April 4 post that the turmoil could eventually push more investors toward Bitcoin as a hedge against centralized economic policies.

Whether Bitcoin can break out soon remains uncertain — but its resilience is clearly being tested.