Bitcoin (BTC) plunged below the critical $75,000 level on Monday, April 7, marking its lowest point since mid-March amid escalating US-China trade tensions. According to CoinMarketCap data, the flagship cryptocurrency shed approximately 6% in 24 hours as part of a broader market sell-off that’s affecting both crypto and traditional financial markets.
Trade War Tensions Trigger Market-Wide Selloff
The dramatic decline follows President Trump’s recent trade order, which imposed significant tariff hikes, prompting immediate countermeasures from Beijing. The resulting market turmoil has led to Wall Street’s most severe decline since the COVID-19 pandemic, with the S&P 500 dropping 6%, the Dow Jones Industrial Average falling 5.5%, and the Nasdaq Composite plunging 5.8% on Friday.
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Altcoin Market Faces Deeper Corrections
The altcoin market has experienced even more severe losses, with Ethereum plummeting 13% – more than double Bitcoin’s percentage drop. Other major cryptocurrencies have also suffered significant losses, with SOL and DOGE declining over 10%, while ADA, XRP, and BNB recorded losses between 6-10%.
Market Statistics and Trading Volume
- Total crypto market cap: $2.62 trillion
- Bitcoin 24-hour trading volume: $26 billion (80% increase)
- Key support level: $74,000 (previous all-time high)
- Next resistance: $80,000
Expert Analysis and Future Outlook
Edul Patel, CEO of Mudrex, suggests a potential catalyst for recovery could come from today’s anticipated US government crypto asset disclosure. The Fear and Greed Index has moved towards “Extreme Fear,” indicating panic selling rather than strategic investment decisions.
FAQ Section
What caused Bitcoin’s price drop below $75,000?
The primary catalyst was escalating US-China trade tensions and new tariff implementations, leading to a broader market sell-off.
Will Bitcoin recover from this dip?
Technical analysts suggest Bitcoin needs to reclaim $80,000 to maintain bullish momentum. The previous all-time high of $74,000 serves as a crucial support level.
How are other cryptocurrencies affected?
Altcoins have experienced more severe corrections, with Ethereum and other major cryptocurrencies dropping 10-13% in value.