The “Black Monday” of the Cryptocurrency Market: Bitcoin Plunges Below $78,000

Crypto Market “Black Monday”

On April 7, 2025, a Monday, the global crypto market faced a sharp drop, dubbed “Black Monday” by investors and media. Bitcoin (BTC) fell below $78,000 in 24 hours, down nearly 7%. Ethereum (ETH) dropped below $1,600, losing over 13%. Other major coins like Solana (SOL) also saw double-digit declines.

At the same time, traditional markets struggled too. Japan’s Nikkei 225 and South Korea’s KOSPI indexes crashed at the open, even halting trading. U.S. stock futures and commodity prices fell as well. This sudden drop spread “extreme fear” across the market. So, what caused this crash, and what might happen next?

The Trigger: Global Economy and Trump’s Tariff Plans

This crypto crash wasn’t random—it tied into chaos in global financial markets. A big reason was Trump’s new tariff policy. Since taking office, Trump has pushed to reshape U.S. trade by adding tariffs. In early April, he announced 10%-25% tariffs on goods from countries like China, Canada, and Mexico.

This scared traditional markets and quickly hit high-risk assets like crypto, which depend on global cash flow.

The tariffs raised fears of a new trade war. Higher import costs could increase inflation, pushing central banks to tighten money policies. For crypto, which thrives on low interest rates, this was bad news. Plus, U.S. tech stocks tumbled, adding to the sell-off of risky assets. Bitcoin’s link to the Nasdaq index was clear that day.
Inside the Market: Leverage and Panic Selling

Beyond outside pressures, the crypto market’s own weaknesses made things worse. High-leverage trading is common in crypto. When prices fall fast, leveraged positions get wiped out, causing a chain reaction. Market data shows liquidations in the last 24 hours might have hit billions of dollars. This “stampede effect” drove prices down further.

Investor confidence also collapsed. On X, people talked about “too much coin concentration” and the “end of the bull run.” Some even questioned blockchain’s long-term value. Panic selling took over, flipping market mood from “greed” earlier this year to “fear,” pushing prices lower.

Current Prices: Key Levels and Technical View

As of 12:15 PM Hong Kong time on April 7, 2025, Bitcoin hovered around $77,500. It tested the $76,500 support level. If it breaks, it could drop to $75,000 or lower. Ethereum sat near $1,580, with $1,550 as a key support.

Solana was around $108, looking for a bottom. On the technical side, the RSI (Relative Strength Index) hit oversold territory, suggesting a possible short-term bounce. But the overall trend still looks bearish.

Short-Term Risks and Long-Term Potential

In the short term, crypto prices will follow global economic moves. Trump’s tariff details, central bank reactions, and traditional market stability will matter most.

If a trade war grows and cash dries up, Bitcoin could fall to $70,000, maybe starting a bigger bear market. But some analysts say this is just a deep dip in a bull run, not a full reversal.

Looking long-term, this crash might open new doors for Bitcoin and others. Tariffs could weaken trust in the U.S. dollar, boosting demand for safe-haven assets.

Gold is outperforming Bitcoin now, but Bitcoin’s “digital gold” role could shine later. BitMEX founder Arthur Hayes predicts that if the Fed restarts easy money policies due to economic strain, Bitcoin might hit $250,000 by year-end.
Tips for Investors

For regular investors, this market is tough but offers chances. Here are some ideas:

Be careful with leverage: High leverage is risky in crashes. Cut positions and keep cash handy.$75,000-$78,000 might be a good Bitcoin buy zone. If it falls below, rethink your plan.

Watch policy news: Trump’s next steps and the Fed’s moves will signal turning points.

Final Thoughts

“Black Monday” shows how tied crypto is to the global economy. From tariff shocks to leverage blowups, this crisis proves crypto’s wild swings are both a risk and a reward. In the coming days, focus will be on defending support levels and clearer policy news. Whether you hold or buy the dip, staying calm and smart is key to surviving this storm. The crypto story isn’t over—its next chapter might already be starting.