Bitcoin fell below $80,000 on Sunday, surpassing 3% in just two hours. Cryptocurrency markets saw widespread losses as global markets responded to the uncertainty driven by new US trade tariffs. Last Wednesday’s announcement from President Trump caused a sharp decline in both the crypto and stock markets. Ethereum fell nearly 8% in 24 hours, reaching its lowest point in five years. The GMCI 30 index, which tracks the top 30 cryptocurrencies, exceeded 6% in a day, down more than 32% since the start of the year.
The decline in the crypto market came with a significant decline in US stock indexes. Both the S&P 500 and NASDAQ composite fell nearly 6% on April 4th. Analyst Holger Zschaepitz said the stock market lost $8.2 trillion more than the worst week of the 2008 financial crisis. The chart shared by Bloomberg’s Zschaepitz highlighted the collapse of global market capitalization.
Comparison with the 1987 “Black Monday” crash increased the fear of a major crash over the weekend. CNBC’s Jim Cramer said on X that he hasn’t photographed a “off-table” scenario so far, adding, “The one who fished at the bottom is sleeping with the fish…so far.” He noted that while circuit breakers in the market may provide some delay, it is not necessarily a reversal.
Bitcoin price transfer caused mixed reactions from traders. Daan Crypto Trades noted that while Bitcoin’s volatility was compressed, Vix (Wall Street Volatility Index) reached levels not seen since the 2020 crash. He said that this contrast between crypto and stocks is rare and that he believes that Bitcoin’s big move will be next week, depending on how the stock market opens up.
Some consider recent drops to be temporary drops. Trader Casbbe writes that this decline is similar to the August 2024 crash and post-ETF dip. He said he is looking at over $92,000 a week to confirm his return to the upward trend.
Max Keizer predicted a rapid growth in Bitcoin, saying that if a massive market crash pushes investors into Bitcoin as a safe asset, it could reach $220,000 by the end of the month. “The 1987 style MegaCrash will push Bitcoin to $220,000 this month.
Block data shows that most cryptocurrencies have declined, but PI networks rose by around 1.5% and ZCASH rose by 0.7%. Injective CEO Eric Chen said Bitcoin’s resilience could be linked to post-ETF demand from institutional investors such as retirement funds and companies such as MicroStrategy and GameStop.