Bitcoin and Crypto Stocks Plunge Amid Trump Tariff Fears – Market Analysis

By: Swarnalata

Published on: Apr 08, 2025

Key Takeaways

• **Bitcoin dropped to 76,000∗∗, down from its February peak of 100,000.


• Crypto stocks plummeted: MicroStrategy (MSTR) fell 12%, Coinbase (COIN) lost 9%, and Bitcoin miners RIOT & MARA dropped sharply.


• Trump's new tariffs and China’s retaliation triggered market-wide sell-offs.


• Robinhood (HOOD) shares tumbled 10% as investor sentiment turned bearish.

Bitcoin and Crypto Market Crash: What’s Happening?

The cryptocurrency market faced another brutal sell-off on Monday, April 7, 2025, as Bitcoin (BTC) fell to $76,000\ast \ast ,extendinglossesfromlastweek.Thismarksa\ast \ast 24$100,000 in February.

The downturn comes amid growing fears over new U.S. tariffs proposed by the Trump administration, along with China’s retaliatory trade measures. The uncertainty has rattled investors, leading to sharp declines in crypto-related stocks and broader market instability.

Why Are Bitcoin and Crypto Stocks Falling?

Trump’s Tariff Announcement

• The U.S. government has signaled it will not stop imposing new tariffs on Chinese imports.


• China responded with counter-tariffs, escalating trade tensions.


• Investors fear a repeat of the 2018-2019 trade war, which hurt global markets.

Crypto Stocks Hit Hard

• MicroStrategy (MSTR): Dropped 12% as its massive Bitcoin holdings lost value.


• Coinbase (COIN): Fell 9% due to lower trading volumes.


• Bitcoin Miners (RIOT, MARA): Both are down 9% as BTC’s price decline squeezed profitability.


• Robinhood (HOOD): Shares plunged 10% as retail traders retreated.

Broader Market Impact

• The S&P 500 and Nasdaq also declined as the risk-off sentiment spread.


• Gold and bonds saw inflows as investors sought safe havens.

Bitcoin Price Analysis: What’s Next?

• Support Levels: If $75,000\ast \ast breaks,Bitcoincouldtest\ast \ast$70,000.


• Resistance: A rebound above $80,000 could signal a short-term recovery.


• Long-Term Outlook: Institutional demand remains strong, but macroeconomic risks could keep prices volatile.

How Should Investors Respond?

• Short-term traders: Watch for key support/resistance levels.


• Long-term holders: Consider dollar-cost averaging (DCA) during dips.


• Stock investors: Monitor tariff developments and Fed policy changes.

Final Thoughts

The Bitcoin and crypto market sell-off reflects broader economic uncertainty driven by U.S.-China trade tensions. While short-term volatility may persist, Bitcoin’s long-term adoption trends remain intact.