New Tariff Policies Send Cryptocurrency and Stock Markets Lower
Cryptocurrency prices declined sharply as US stock futures opened lower on April 6, following the implementation of new global tariffs. Bitcoin dropped over 6% in 24 hours to around $77,883, while Ethereum fell more than 12% to $1,575, according to CoinGecko data.
The total crypto market capitalization decreased by more than 8% to $2.5 trillion. Prices have since recovered slightly, with Bitcoin rising 1.4% to $78,500 and Ethereum reaching $1,594. The Crypto Fear & Greed Index registered a score of 23 in its April 7 update, indicating "extreme fear" in the market.
Charlie Sherry, head of finance at Australian crypto exchange BTC Markets, attributed the drop partly to Sunday market illiquidity. He explained that during these periods, a few large sell-offs can have a disproportionate impact on prices. He added that recent discussions about tariffs have introduced uncertainty into global trade relations.
The US stock futures market also suffered significant losses. Futures tied to the S&P 500 dropped nearly 4%, while the Dow Jones Industrial Average futures fell by over 8%. According to trading resource Kobeissi Letter, this puts S&P 500 futures in "bear market territory," noting the US stock market has erased approximately $400 billion per trading day for 32 consecutive days.
The new trade policy implemented a 10% tariff on all countries starting April 5, with higher rates for specific nations:
- China: 34%
- European Union: 20%
- Japan: 24%
US National Economic Council Director Kevin Hassett revealed in an April 6 interview with ABC's This Week program that more than 50 countries have reached out to negotiate fresh trade deals. Meanwhile, US Treasury Secretary Scott Bessent urged US trading partners against taking retaliatory steps, arguing the current tariff rates represent "the high end of the number" if countries don't add more levies in response.
