Due to Falling Tariffs and Cryptocurrencies, Bitcoin Drops More Than 8 Percent

Crypto and the U.S. stock market are experiencing significant declines after the Trump administration once again emphasized its commitment to global tariff strategies. The Trump administration has imposed 10 percent tariffs on all countries starting April 5, with higher rates for some, including 34 percent on China, 20 percent on the European Union, and 24 percent on Japan.

Bitcoin has dropped over 8 percent in the last 24 hours, falling to a low of around $74,500. Meanwhile, Ethereum has decreased by over 16 percent in the same timeframe, trading at $1,400. The total market capitalization of the crypto market has fallen by more than 10 percent to $2.5 trillion.

Since then, prices have recovered some losses. Bitcoin has rebounded to $76,500. Meanwhile, Ethereum has returned to $1,500.

At the same time, the Crypto Fear & Greed Index, which measures market sentiment, recorded a score of 23 in its latest update, indicating extreme fear.

Some analysts, such as BitMEX co-founder Arthur Hayes, have been predicting a drop in Bitcoin to $70,000 for some time. He now speculates that tariffs, while shaking markets, could result in a rise in Bitcoin.

The U.S. stock market is also in decline. Futures tied to S&P 500 have fallen nearly 4 percent. Dow Jones Industrial Average futures have plummeted by more than 8 percent. The Kobeissi Letter stated in a post on April 6 that the drop in futures on the U.S. stock market places the S&P 500 in bear market territory with a decline of more than 20 percent, adding that the U.S. stock market has now erased an average of $400 billion per trading day over the last 32 days.

Trump Administration Stands Firm on Tariffs

Billionaire investor Bill Ackman speculates that U.S. President Donald Trump may delay tariffs to allow countries to make counter-offers or agreements. In a statement on April 6 on his social media platform, Truth Social, Trump reiterated the importance of tariffs, stating that the U.S. has massive financial deficits with China, the European Union, and many others, which they will resolve.

– The only way to cure this problem is through tariffs, which are now bringing tens of billions of dollars to the U.S. They are already in effect and it’s a nice thing to see – he said.

He also told reporters aboard Air Force One that he did not intentionally try to trigger a market sell-off, but added that ‘sometimes you have to take medicine to fix something.’

At the same time, the Director of the U.S. National Economic Council, Kevin Hassett, stated on April 6 in an interview for ABC’s This Week that more than 50 countries have contacted the president to negotiate new trade agreements.

– They are doing this because they realize they bear a large portion of the tariffs – he said.

U.S. Treasury Secretary Scott Bessent urged American trading partners in an interview with Bloomberg on April 2 not to take retaliatory measures, claiming that ‘this is the highest price’ for tariffs if they do not attempt to add additional levies in response.