Why Crypto Market is Going Down?Chinese Stock Market , Nasdaq , Hang Seng Index, Nifty 50 Plunge

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Bitcoin has broken below a key trendline and the 50-week EMA, confirming entry into a bear market. The next major support lies at $69K—Bitcoin’s previous all-time high and Michael Saylor’s average buy-in. Blue-chip cryptos have plunged over 20% in a single day, presenting a strong buying opportunity for long-term investors. At this point, only intervention from Trump or the Federal Reserve may revive bullish momentum.

Beijing is reportedly considering front-loading monetary stimulus to offset the economic impact of Trump’s sweeping tariffs, which have rattled global markets. Bitcoin dropped below $80K as tensions escalated after Trump vowed no trade deal with China unless the deficit is resolved. Goldman Sachs now expects 130 basis points in Fed rate cuts for 2025, while the Reserve Bank of Australia is forecasted to cut rates four times, reflecting mounting recession fears and global economic instability.

Crypto analyst Michaël van de Poppe warns that Bitcoin is facing panic-driven volatility, with a potential drop as deep as $70K. He notes the market is reacting to Trump’s tariff move and speculates the Fed might call an emergency meeting within 1-2 weeks. If no action is taken, further downside is likely. Despite the panic, he sees this 30% correction from the highs as a key buying opportunity, suggesting long-term gains for those who accumulate Bitcoin at current levels.

Just before the recent market crash, a crypto whale deposited 778.5 BTC worth $64.33 million to Binance in an attempt to stop out. The move resulted in a $2.53 million loss. A month earlier, the whale had bought 978.5 BTC for $84.07 million at $85,913 per coin, thinking it was the bottom. However, the market dropped even further, catching the investor off guard and forcing a loss-cut amid the unexpected plunge.

Crypto analyst Lark Davis compared the current market crash triggered by U.S. tariffs to the Covid crash, suggesting that while short-term pain is likely, a major recovery could follow. He highlighted that global liquidity (M2) remains high and predicted that the U.S. Fed may be forced to cut rates or even reintroduce QE if job markets weaken further. With JPMorgan hinting at emergency rate cuts, Davis believes Q3 or Q4 could bring significant market rebounds after the current downturn.

On April 7, 2025, the crypto market faced a sharp selloff, with Bitcoin falling below $78,000 and Ethereum slipping under $1,600. The downturn sparked panic among investors, pushing the Bitcoin Fear and Greed Index into “extreme fear” territory. Analysts are now watching closely, with mixed views on whether the market will see a deeper crash or begin to stabilize. The current sentiment reflects high uncertainty and caution amid growing macroeconomic concerns.

Global stock markets tumbled sharply following President Donald Trump’s new tariff measures. China’s stock market opened with a 10% drop, while Japan’s Nikkei 225 futures hit circuit breakers, halting trading. Trump defended the tariffs, claiming they generate revenue for the U.S. and help fix trade imbalances with China and the EU. Despite the market fallout, the President signaled he’s willing to accept short-term volatility to push his broader economic strategy forward.

Crypto analyst Lark Davis commented on the sudden market crash, calling Trump’s tariff board reveal a “Black Swan” event. Last week, markets briefly reacted positively, thinking tariffs would be limited to 10%. However, once Trump displayed much higher numbers, panic set in. Davis noted that this unexpected move shocked investors and led to a sharp selloff. He added that the focus now shifts to finding a new market bottom after this surprise trigger.

In the past 24 hours, the crypto market witnessed a brutal shakeout with over $1 billion in liquidations, including $865 million from long positions. Bitcoin led the crash, plunging sharply from above $83,000 to under $77,000. The sudden drop triggered mass liquidations, impacting over 323,000 traders. Rising global trade tensions and bearish technical setups have amplified market fears, signaling more downside ahead for Bitcoin and the broader crypto market in the coming days.

An Ether whale lost 67,570 ETH (around $106M) after being liquidated on the DeFi platform Sky, formerly Maker, due to a 14% ETH price crash. The investor’s collateral ratio dropped below the required 150% to 144%, triggering liquidation. Another whale is close to liquidation after borrowing DAI against 56,995 WETH. ETH has fallen to $1,547, its lowest since October 2023. Over 320,000 traders were liquidated in 24 hours, totaling nearly $1B, mainly from ETH positions.

​On April 7, 2025, Japan’s financial markets experienced significant turmoil. The Nikkei 225 index plummeted by over 2,000 points, dropping below the 32,000 mark—a decline of approximately 6.67%—reaching an 18-month low of 31,527.49. This sharp downturn triggered the Osaka Stock Exchange’s circuit breaker mechanism, resulting in a temporary suspension of Nikkei 225 and Topix futures trading due to excessive volatility.

​On April 7, 2025, the cryptocurrency market experienced a significant downturn following the Trump administration’s announcement of new global tariffs, which heightened investor concerns about a potential global recession. Bitcoin dropped below $80,000, reaching approximately $79,000—a 5% decline over 24 hours—while Ethereum fell 11% to around $1,590. This sell-off led to over $745 million in bullish crypto positions being liquidated within a day. ​

Bitcoin price USD dropped sharply in the last 24 hours as the crypto market reacted to US President Trump’s continued push for restrictive tariffs. Just weeks after a major rally driven by Trump’s new strategic reserve plan, the market reversed, wiping out over half a trillion dollars in value. This sharp decline triggered massive liquidations, with Bitcoin alone facing $250 million in long positions wiped out, according to CoinGlass data.