Catenaa, Monday, April 07, 2025- Bitcoin dropped below $80,000 on Sunday, as the fall in the cryptocurrency market continues with markets reacting to US trade tariffs.
With President Trump’s announcement last Wednesday on reciprocal tariffs, a sharp decline in the crypto market was seen with Ethereum dropping nearly 8% in 24 hours, and the ETH/BTC ratio hit its lowest point in five years.
The GMCI 30 Index, tracking the top 30 cryptocurrencies, fell over 6% in a day and is down more than 32% since the start of the year.
Fears of a larger crash grew over the weekend, with comparisons made to the 1987 “Black Monday”.
Bitcoin’s price movement has sparked mixed reactions from traders. Daan Crypto Trades pointed out that Bitcoin’s volatility is compressing while the VIX—Wall Street’s volatility index—has reached levels not seen since the 2020 COVID crash. He said such a contrast between crypto and stocks is rare and believes a major move in Bitcoin is likely next week, depending on how the stock market opens.
Some see the recent drop as temporary. Trader Cas Abbe wrote that the decline looks similar to Bitcoin’s August 2024 crash and the post-ETF dip. He said he is watching for a weekly close above $92,000 to confirm a return to an upward trend.
Max Keiser predicted a steep rise for Bitcoin, saying it could hit $220,000 by the end of the month if a large-scale market crash pushes investors into Bitcoin as a safe asset. “A 1987 style mega crash will push Bitcoin to $220,000 this month as trillions in wealth seek the ultimate safe haven: Bitcoin,” he wrote in response to Cramer.
While most cryptocurrencies fell, Pi Network gained around 1.5% and ZCash rose 0.7%, according to The Block’s data.
