Bitcoin prices fell below $75,000 on Monday, April 7, marking the lowest level since mid-March as investors reacted to escalating tensions in US-China trade relations. According to CoinMarketCap data, the digital currency experienced a significant drop of approximately 6% within 24 hours, part of a broader sell-off impacting both cryptocurrency and traditional markets.
US-China Trade War Triggers Market Panic
This sharp decline follows US President Donald Trump’s recent imposition of tariff increases, which were met with countermeasures from Beijing. The trade tensions sent shockwaves through world markets, leading to Wall Street’s worst performance since the COVID-19 pandemic. On Friday, April 4, the S&P 500 dropped 6%, the Dow Jones Industrial Average fell 5.5%, and the tech-heavy Nasdaq Composite decreased by 5.8%.
Market commentator Charles Gasparino warned on Twitter that “Monday is shaping up to be the ultimate pain day,” suggesting that investors should brace for additional selling pressure at the week’s market opening. This prediction appears to be unfolding as Bitcoin is currently trading between $74,000 and $75,000, significantly lower than levels observed just one week ago.
Breaking: One major market analyst just told me “Monday is shaping up to be the ultimate pain day.” Another: “Some really nice buys out there particularly in financials.” As they say disagreement makes a market! Story developing
— Charles Gasparino (@CGasparino) April 6, 2025
Ethereum and Altcoins Hit Harder Than Bitcoin
While Bitcoin suffered substantial losses, other cryptocurrencies experienced even sharper declines. Ethereum, the second-largest cryptocurrency by market capitalization, plummeted by 13%, more than doubling Bitcoin’s percentage drop. Other prominent altcoins also faced significant losses, with SOL and DOGE dropping over 10% in just one day. ADA decreased by 10.40%, while XRP and BNB declined by 7% and 6%, respectively.
Currently, the global cryptocurrency market capitalization stands at $2.62 trillion, as most leading coins struggle to find support. Despite the declining prices, Bitcoin’s 24-hour trading volume surged to $26 billion, marking an 80% increase over the previous 24 hours, which indicates robust market activity during this sell-off period.
Investors Turn To Government Crypto Reserves For Potential Relief
There may be a silver lining amid the market chaos. Edul Patel, CEO and co-founder at Mudrex, mentioned that US government agencies will disclose their crypto assets today. He noted, “A huge confirmation could lead to a relief rally.”
The prevailing market sentiment remains weak, with the Fear and Greed Index approaching what analysts describe as “Extreme Fear.” This rating suggests that frantic selling has been dictating recent market behaviors rather than informed investment decisions.
According to market observers, Bitcoin is facing a crucial technical test. Patel emphasized, “Bitcoin must retake the $80,000 level or it will retest its prior all-time high around $74,000.” This former all-time high, once celebrated as a landmark, now serves as a critical support level that traders hope will curb future price declines.
Featured image from Gemini Imagen, chart from TradingView
