The cryptocurrency market experienced a significant crash on April 6–7, 2025, with Bitcoin’s price briefly falling by nearly 10% within a 24-hour period, causing the total market capitalization of cryptocurrencies to decrease by over $200 billion.
On the night of April 6–7, Bitcoin’s price dropped to $74,600, according to CoinGecko, marking a local low for 2025. Other cryptocurrencies also saw declines, leading to the overall market cap falling by more than 10%. This drop coincided with increasing macroeconomic tensions.
One of the main factors contributing to this downturn could be the trade tariffs imposed by Donald Trump on April 2, 2025, as part of his efforts to strengthen U.S. national and economic security. In the first two days following the announcement, losses in the U.S. stock market exceeded $5.4 trillion. The tariffs went into effect on April 5.
At first, the cryptocurrency market showed a muted reaction to the new U.S. import tariffs, but large sell-offs followed as the new trading week began, triggering a significant price drop. Experts link this to growing uncertainty and expectations of escalating economic conflict between the U.S., China, and the EU, raising the likelihood of a global recession and prompting capital to flow out of high-risk assets.
Crypto market participants were initially optimistic about Donald Trump’s return to the presidency. Before his inauguration, Bitcoin’s price set a new ATH, surpassing $108,700.
