Cryptocurrency prices tumbled as the US stock futures market opened sharply lower on April 6 as the Trump administration doubled down on its global tariff strategy.
The Trump administration hit all countries with a 10% tariff starting April 5, with some slapped at higher rates, including China at 34%, the European Union at 20%, and Japan at 24%.
Bitcoin droppedover 6% in the last 24 hours and was trading around $77,883. Meanwhile, EtherETH$1,564 shed over 12% in the same time frame and was trading at according to CoinGecko. The total crypto market cap droppedover 8% to $2.5 trillion.
Prices have clawed back some losses since. Bitcoin has recovered 1.4% to $78,500. Meanwhile, Ether regained $1,594.
At the same time, the Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, returned a score of 23 in its latest April 7 update, which is considered extreme fear.
In a statement, Charlie Sherry, head of finance at Australian crypto exchange BTC Markets, said the drop is unsurprising because global markets are generally more illiquid on Sundays.
“As a result, a few large sell-offs can have a disproportionate impact, pushing prices down quickly,” he said.
“There’s no mystery behind the trigger: President Trump’s recent tariff talk has rattled macro markets, with global trade relations suddenly looking uncertain.”
Some traders, however, predict a Bitcoin breakout could be around the corner. BitMEX co-founder Arthur Hayes has also speculated that while the tariffs are rattling markets, they could result in a Bitcoin rally.
The US Stock Futures market has also opened down.
Futures tied to the S&P 500 dropped nearly 4%, according to Google Finance. Meanwhile, the tech-heavy Nasdaq lost, and the Dow Jones Industrial Average futures sank by over 8%.
Trading resource the Kobeissi Letter said in an April 6 post to X that the drop in US stock market futures puts S&P 500 futures in ”bear market territory,” adding that the US stock market has now erased an average of $400 billion per trading day for the last 32 days.