On Monday, April 7, 2025, Bitcoin's price plummeted below $75,000, marking a significant downturn in the cryptocurrency market. Just two days prior, on Saturday, April 5, Bitcoin was still trading above $83,000. This dramatic shift has been attributed to what many are calling a "black Monday" in financial markets, a term that has resurfaced since its historical use during significant crashes.
The decline in Bitcoin's price reflects broader concerns about the U.S. economy and the potential for a recession, largely fueled by the trade policies of President Donald Trump. Following Trump's electoral victory in early November 2024, Bitcoin had surged from approximately $70,000 to a high of over $109,000 by January 20, 2025, just before his inauguration. However, the optimism surrounding Trump's presidency has now given way to fears about his aggressive tariff strategies, which many analysts believe could lead to economic downturns.
In the past week, market sentiment shifted dramatically. According to Polymarket, the probability of a U.S. recession in 2025 jumped from 38% to 64%, prompting investors to reassess their portfolios and react quickly to the changing economic landscape. The repercussions of this shift were felt across various financial markets, with the Hong Kong stock exchange dropping 11% on April 7, while Tokyo and Shanghai's markets fell by 8%. European exchanges opened down by 4%, and U.S. stock futures indicated a similar trend.
Bitcoin's fall is part of a larger trend affecting cryptocurrencies. The total market capitalization of all cryptocurrencies fell by about 12% to $2.47 trillion, reverting to levels seen when Trump won the election. Ether, the second-largest cryptocurrency, also experienced a significant drop, reaching its lowest price since March 2023.
Technical analysis reveals a bearish outlook for Bitcoin. The cryptocurrency has been under a descending resistance trend line since its all-time high, indicating a persistent downward trend. Bitcoin's price has decreased by 30% since its peak, with analysts noting that it could drop further to key support levels around $69,000, or even lower, depending on market conditions.
The recent downturn has also been exacerbated by a phenomenon known as "liquidations," where traders are forced to sell their positions at a loss due to falling prices. In the last 24 hours, Bitcoin suffered $250 million in long liquidations, the highest amount since early March. This selling pressure has contributed to the overall negative sentiment surrounding cryptocurrencies.
As Bitcoin continues to struggle, some investors are watching for potential recovery points. Key support levels have been identified at $74,000, $65,000, and $57,000. Conversely, a significant overhead resistance area is noted around $87,000, which traders will monitor for any signs of recovery.
The broader implications of these market movements are concerning. The S&P 500 index has already lost more than 13% in 2025, while the Nasdaq has seen a decline of over 17%. The Hang Seng index in Hong Kong has dropped 18% from its recent highs, indicating a global trend of financial instability.
Interestingly, despite the turmoil in the cryptocurrency and stock markets, gold prices have not surged as one might expect during such a crisis. Instead, gold has exited its recent bull trend, suggesting that markets may have already priced in the current economic challenges. Analysts are cautious, noting that if gold continues to decline, it could signal a more profound shift in market sentiment.
In summary, the crash of Bitcoin below $75,000 on April 7, 2025, is emblematic of a broader financial crisis driven by fears of recession and the impact of trade tariffs. As investors navigate this turbulent landscape, the focus will remain on key support levels for Bitcoin and the overall health of the cryptocurrency market.
