The cryptocurrency market plunged on April 7 as digital assets reacted to the latest global trade tension triggered by Donald Trump’s sweeping new tariffs. A steep sell-off began at the Asia open, following signals of deepening economic uncertainty.
Bitcoin, the world’s largest cryptocurrency, sank as low as $77,077 in early Singapore trading—marking a 7% drop from previous levels, Bloomberg reported. Ethereum also slumped, touching its lowest intra-day price since October 2023 at $1,538.
According to data from Coinglass, over $745 million in bullish crypto positions were liquidated within 24 hours—the highest in nearly six weeks. The sell-off reflected “a clear risk-off sentiment across markets,” the outlet noted.
Markets try to recover, but uncertainty lingers
By 7 am IST, Bitcoin had clawed back some ground, trading at around $78,938—still down 5.69% in 24 hours, according to CoinMarketCap. Its market cap stood at $1.56 trillion, with $40.97 billion in trading volume.
Ethereum fared worse, dropping 12.10% to $1,590.06, with a market cap of $191.88 billion. Other major tokens also took a hit. Solana slid 11.44% to $106.53, and Tether—though stable at $0.9994—dominated trading volumes at $82.48 billion, even surpassing Bitcoin.
The total market cap for all cryptocurrencies fell to $2.5 trillion, down 6.59% over the day. Daily trading volume surged 137.91% to $101.84 billion, showing high activity amid the downturn.
What’s driving the sell-off?
The sharp downturn follows Trump’s aggressive push for new global tariffs, which spooked investors and sent financial markets into a spiral.
Sean McNulty, head of APAC derivatives at FalconX, told Bloomberg that options trading is showing signs of continued strain: “The skew for puts [is] picking up considerably.” He added, “Key support levels for Bitcoin and Ether are $75,000 and $1,500, respectively.”
Cosmo Jiang, general partner at Pantera Capital, echoed that macro policy was the core issue. “Macro is driving the action right now. The tariff-driven pullback is idiosyncratic and not because of deeper issues in our economy. Just like it was artificially injected in, so too can it be taken out after the Trump administration feels it has won concessions from other countries.”
Stablecoins in the crosshairs
As market turbulence continues, another storm brews in Washington. A pair of competing bills in Congress could decide the future of stablecoins—cryptocurrencies pegged to the U.S. dollar.
One bill, soon heading to the House floor, would prohibit stablecoin issuers from paying interest to holders. A separate Senate version allows some exceptions but stops short of a ban.
The stakes are high. If allowed to pay interest, stablecoin firms could lure customers away from traditional banks—raising concerns about financial stability.
“This is an existential threat to the banking industry, as well as to the financial system writ large,” warned Arthur Wilmarth, professor emeritus of law at George Washington University, in a statement to Reuters. He cautioned that “taxpayers could ultimately be on the hook.”
Bo Hines, who chairs Trump’s Council of Advisers on Digital Assets, recently said the White House wants a stablecoin bill passed before August.
Industry divided over regulation
The response from the crypto industry has been mixed. Coinbase CEO Brian Armstrong argued on X that “the government shouldn’t put its thumb on the scale to benefit one industry over another. Banks and crypto companies alike should both be allowed to, and incentivised to, share interest with consumers.”
Hina Sattar Joshi, digital assets sales director at TP ICAP, described stablecoins as the first real blockchain application “to be fully integrated into traditional finance.” In emailed comments, she said, “We are witnessing the early stages of this transformation.”
She added that stablecoins were drawing strong institutional interest, calling them a “credible bridge between traditional assets and crypto.”
Tether leads the pack—but raises new risks
At the centre of this shift is Tether’s USDT, which now commands a $144 billion market cap. It’s the dominant stablecoin, widely used to trade other digital assets. In 2024 alone, Tether generated $13 billion in profits through its holdings in Bitcoin, gold, U.S. Treasuries, and other financial instruments.
This success is attracting traditional financial giants. “It’s pretty clear there’s going to be a stablecoin,” Bank of America CEO Brian Moynihan said at a recent Economic Club event, as reported by DL News. “If they make that legal, we’ll go into that business.”
For now, cryptocurrencies remain on shaky ground. Global policy tensions, volatile price action, and an evolving legal landscape have combined to create a tense moment for digital finance.
Whether Bitcoin finds its footing or stablecoins become a fixture of mainstream banking, the coming weeks may redefine the relationship between governments, tech, and money.
Bitcoin, the world’s largest cryptocurrency, sank as low as $77,077 in early Singapore trading—marking a 7% drop from previous levels, Bloomberg reported. Ethereum also slumped, touching its lowest intra-day price since October 2023 at $1,538.
According to data from Coinglass, over $745 million in bullish crypto positions were liquidated within 24 hours—the highest in nearly six weeks. The sell-off reflected “a clear risk-off sentiment across markets,” the outlet noted.
Markets try to recover, but uncertainty lingers
By 7 am IST, Bitcoin had clawed back some ground, trading at around $78,938—still down 5.69% in 24 hours, according to CoinMarketCap. Its market cap stood at $1.56 trillion, with $40.97 billion in trading volume.
Ethereum fared worse, dropping 12.10% to $1,590.06, with a market cap of $191.88 billion. Other major tokens also took a hit. Solana slid 11.44% to $106.53, and Tether—though stable at $0.9994—dominated trading volumes at $82.48 billion, even surpassing Bitcoin.
The total market cap for all cryptocurrencies fell to $2.5 trillion, down 6.59% over the day. Daily trading volume surged 137.91% to $101.84 billion, showing high activity amid the downturn.
What’s driving the sell-off?
The sharp downturn follows Trump’s aggressive push for new global tariffs, which spooked investors and sent financial markets into a spiral.
Sean McNulty, head of APAC derivatives at FalconX, told Bloomberg that options trading is showing signs of continued strain: “The skew for puts [is] picking up considerably.” He added, “Key support levels for Bitcoin and Ether are $75,000 and $1,500, respectively.”
Cosmo Jiang, general partner at Pantera Capital, echoed that macro policy was the core issue. “Macro is driving the action right now. The tariff-driven pullback is idiosyncratic and not because of deeper issues in our economy. Just like it was artificially injected in, so too can it be taken out after the Trump administration feels it has won concessions from other countries.”
Stablecoins in the crosshairs
As market turbulence continues, another storm brews in Washington. A pair of competing bills in Congress could decide the future of stablecoins—cryptocurrencies pegged to the U.S. dollar.
One bill, soon heading to the House floor, would prohibit stablecoin issuers from paying interest to holders. A separate Senate version allows some exceptions but stops short of a ban.
The stakes are high. If allowed to pay interest, stablecoin firms could lure customers away from traditional banks—raising concerns about financial stability.
“This is an existential threat to the banking industry, as well as to the financial system writ large,” warned Arthur Wilmarth, professor emeritus of law at George Washington University, in a statement to Reuters. He cautioned that “taxpayers could ultimately be on the hook.”
Bo Hines, who chairs Trump’s Council of Advisers on Digital Assets, recently said the White House wants a stablecoin bill passed before August.
Industry divided over regulation
The response from the crypto industry has been mixed. Coinbase CEO Brian Armstrong argued on X that “the government shouldn’t put its thumb on the scale to benefit one industry over another. Banks and crypto companies alike should both be allowed to, and incentivised to, share interest with consumers.”
Hina Sattar Joshi, digital assets sales director at TP ICAP, described stablecoins as the first real blockchain application “to be fully integrated into traditional finance.” In emailed comments, she said, “We are witnessing the early stages of this transformation.”
She added that stablecoins were drawing strong institutional interest, calling them a “credible bridge between traditional assets and crypto.”
Tether leads the pack—but raises new risks
At the centre of this shift is Tether’s USDT, which now commands a $144 billion market cap. It’s the dominant stablecoin, widely used to trade other digital assets. In 2024 alone, Tether generated $13 billion in profits through its holdings in Bitcoin, gold, U.S. Treasuries, and other financial instruments.
This success is attracting traditional financial giants. “It’s pretty clear there’s going to be a stablecoin,” Bank of America CEO Brian Moynihan said at a recent Economic Club event, as reported by DL News. “If they make that legal, we’ll go into that business.”
For now, cryptocurrencies remain on shaky ground. Global policy tensions, volatile price action, and an evolving legal landscape have combined to create a tense moment for digital finance.
Whether Bitcoin finds its footing or stablecoins become a fixture of mainstream banking, the coming weeks may redefine the relationship between governments, tech, and money.
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