Bitcoin Dips Below $75K as Trade War Turmoil Rocks Global Markets
April 7, 2025 — Bitcoin plunged below the $75,000 mark early Monday, hitting an intraday low of $74,637, as President Donald Trump’s escalating tariff regime sent shockwaves through global financial markets. The cryptocurrency’s sharp decline—down over 10% from $84,000 just last week—mirrors a broader selloff that has erased more than $5 trillion from the S&P 500 since Trump’s April 2 announcement of sweeping import duties, stoking fears of a full-blown trade war.
The turmoil began last Tuesday when Trump unveiled a 10% baseline tariff on all U.S. imports, effective April 5, with steeper levies—34% on China, 25% on Canada and Mexico, and up to 50% on 57 other nations—slated for April 9. China retaliated Friday with a matching 34% duty on U.S. goods, while Canada and Mexico vowed countermeasures worth over $100 billion. The abrupt policy shift, dubbed “Liberation Day” by Trump, has jolted investor confidence, driving a flight from risk assets like Bitcoin, which has shed 28% from its January all-time high of $109,000.
“Bitcoin’s not decoupling from this mess—it’s caught in the crossfire,” said Edul Patel, CEO of Mudrex, noting the crypto market’s $247 million in long position liquidations over the past 24 hours, per CoinGlass data. Ethereum, the second-largest cryptocurrency, fared worse, tumbling 14.66% to $1,544.63, while Solana, Dogecoin, and XRP posted double-digit losses. The Coinbase 50 index, tracking the platform’s top traded coins, fell 11.08%, underscoring the sector-wide panic.
Analysts point to a mix of factors dragging Bitcoin down. The Fear and Greed Index has slipped toward “Extreme Fear,” reflecting weak sentiment as Trump’s tariffs threaten economic growth and corporate earnings. “The market’s questioning Bitcoin’s safe-haven status versus its risk-asset behavior,” one observer noted on X, highlighting derivatives unwinding and technical support levels near $76,000 buckling under pressure. Vikram Subburaj of Giottus Crypto Platform warned that a break below $74,000 could see Bitcoin test $72,000 in the coming weeks.
Trump, golfing in Florida over the weekend, remained defiant, posting on Truth Social, “THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN.” His team, including top adviser Kevin Hassett, insists the tariffs won’t spike consumer prices—a claim Federal Reserve Chair Jerome Powell contradicted in a Friday speech, predicting inflation and slower growth. Powell’s remarks, ahead of his Monday address on rates and tariffs, have dimmed hopes of near-term rate cuts, further souring risk appetite.
For Bitcoin bulls, a glimmer of hope rests on today’s expected disclosure of U.S. federal crypto holdings, which Patel suggests could spark a relief rally if sizable. Yet with global markets—from Asia’s Nikkei (down 1.7%) to Europe’s STOXX 600 (in correction territory)—still reeling, the road ahead looks treacherous. “This is a violent shakeout,” said Arthur Hayes of BitMEX, who last month forecast a potential drop to $70,000. For now, as trade war fears deepen, Bitcoin’s dip below $75,000 signals a crypto winter may be looming—unless the White House’s next move changes the tune.
