Introduction
The opening week of April 2025 jolted global financial markets as Bitcoin (BTC) crashed below $75,000. At the same time, stock indices worldwide flashed red, sparking memories of the 1987 Black Monday collapse and the COVID-19 market plunge among investors.
Bitcoin Dips Below $75,000: Bullish Momentum in Jeopardy
Bitcoin tumbled under $75,000, hitting its lowest mark since November 2024. This drop thrust the 2021 peak of $69,000 back into focus as a critical support level. The long-term upward trend now teeters on a knife-edge, facing either a rebound or a steep decline.
Market expert Kevin Svenson labeled this moment “Bitcoin’s final shot at preserving its macro bullish framework.” A failure to hold here could drag BTC into a lengthy consolidation phase, dashing dreams of fresh record highs in 2025.
Death Cross Emerges, Signaling a Potential Slump
Price isn’t the only red flag. The daily BTC chart now displays a Death Cross, where the 50-day moving average slips beneath the 200-day moving average—a bearish signal hinting at a sustained downturn.
Trader CrypNuevo pointed out that BTC also fell below its 50-week EMA near $77,000, triggering short-sell opportunities. A swift recovery above this threshold might turn the drop into a false alarm, potentially pushing Bitcoin toward $87,000. For now, BTC trades at $79,910, showing signs of stabilization.
U.S. Trade Tariffs Rattle Global Markets
As crypto enthusiasts tracked BTC’s slide, traditional markets reeled from news of incoming U.S. trade tariffs, effective April 9. Commerce Secretary Howard Lutnick affirmed no delays would soften the blow.
These tariffs threaten to upend global supply chains and spike commodity costs, stoking inflation fears. Investors now brace for a “second inflation wave,” rattling stocks and risk assets like Bitcoin and altcoins alike.
Markets Bet on a Fed Rate Cut Sooner Than Later
Even with inflation looming, traders increasingly expect the Federal Reserve to slash rates early to dodge a deeper recession. Upcoming U.S. inflation figures—March CPI and PPI—drop on April 10–11 and could sway the Fed’s next steps.
Polymarket data shows growing odds of a May rate cut overtaking June forecasts. Investor Anthony Pompliano cautioned that delays from the Fed amid fragile markets and tame inflation could plunge the U.S. economy into a harsh, drawn-out slump.
Retail Investors Panic as Fear Takes Hold
While big players bide their time, retail investors—who fueled past crypto surges—run low on cash and confidence, triggering widespread sell-offs.
The Crypto Fear & Greed Index recently sank to its lowest in months, revealing rampant unease. On April 7, 2025, it hit 23—“Extreme Fear”—down sharply from 34 a week earlier. This nosedive mirrors the growing dread gripping the market.
Conclusion: A Modern Black Monday Brewing?
No one can say for sure if this echoes Black Monday 1987, but the ingredients—technical woes, rattled sentiment, and macro pressures—create a volatile mix. Bitcoin and global markets now flirt with a significant pullback. The big question remains: who will weather the storm, and who will crumble?
