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A massive $250 billion disappeared from the cryptocurrency market as Bitcoin dropped to a five-month low of $74,000 on Monday. This crash followed President Donald Trump’s tariff announcements that sent markets worldwide into panic mode.
Major cryptocurrencies suffered their worst sell-off of 2025. Ethereum fell below $1,500 for the first time since March 2023. Solana briefly traded under $100, a level not seen since January 2024. This market-wide collapse showed how vulnerable crypto is to broader economic problems, despite hopes it might be safer than traditional markets during economic trouble.
Crypto traders watched as more than $853 million in leveraged positions were wiped out within 24 hours. Bitcoin and Ethereum long positions made up most of these losses at $246 million and $216 million, respectively, according to Coinglass data.
The sell-off was directly linked to Trump’s April 2-3 announcement of additional tariffs—up to 50% on Chinese goods—bringing the total to 104%. This move started a chain reaction across global stocks, erasing $7 trillion in market value before spreading to crypto markets.
Market sentiment crashed along with prices. The Crypto Fear & Greed Index fell to “Extreme Fear” at 23, its lowest reading since early March. This dramatic shift stands in stark contrast to January, when Bitcoin reached an all-time high of $110,000 shortly after Trump took office.
QCP Capital analysts noted that crypto and traditional markets are moving more in sync during this crisis: “BTC largely weathered the storm over the weekend. However, that resilience proved short-lived.” They emphasized that crypto has resumed its relationship with stocks, making losses worse rather than protecting them.
The market trouble spread far beyond crypto. Asian markets suffered historic losses—Japan’s Nikkei fell 7.8%, Hong Kong stocks dropped 13%, and Taiwan experienced its largest one-day percentage fall on record at nearly 10%.
Some countries tried to ease tensions. Vietnam, Israel, and India lowered tariffs on US products. Meanwhile, China fought back, announcing a 34% tax on all US goods and controls on seven rare earth elements.
Bitcoin’s performance has disappointed investors who believed in Trump’s pro-crypto stance. Even after creating a strategic crypto reserve last month, the administration’s broader economic policies have overshadowed any crypto-specific initiatives.
“Time and time again, it’s been proven that investors still view bitcoin as a risk-on beta asset, and the window of relative strength towards the back half of last week appeared to just be bitcoin lagging equities,” said Will Clemente, an independent investor.
As traders assess the damage, many wonder if this is a temporary correction or the start of a longer downturn. For now, cryptocurrencies remain caught in global economic forces much larger than their own ecosystem.
