TLDR:
- Bitcoin dropped to $77,300 (down 7.6%) and Ethereum fell 14% as markets reacted to Trump’s tariff plans
- Bill Ackman, a Trump supporter, called for a 90-day pause on tariffs to prevent an “economic nuclear winter”
- US futures signaled a potential “Black Monday” with S&P futures down 5.98% and Nasdaq futures down 6.2%
- Trump announced 25% tariffs on foreign-made cars and a 10% baseline tariff on all imports
- MEXC Exchange COO predicts Bitcoin could fall to $52,000-$56,000 range by summer
The announcement of sweeping new tariffs by President Donald Trump has sent shockwaves through financial markets, with cryptocurrencies experiencing sharp declines alongside traditional markets. Both Bitcoin and Ethereum posted double-digit losses as investors rushed to reduce risk exposure amid growing fears of trade tensions and economic uncertainty.
Bitcoin tumbled to $77,300 on Monday, representing a 7.6% drop over 24 hours and erasing nearly $70 billion in market capitalization. The leading cryptocurrency had briefly rallied to $87,800 during Trump’s tariff announcement last Thursday before quickly retreating.
Ethereum fared even worse, plunging 14% in a single day to reach $1,555, according to data from CoinGecko. The second-largest cryptocurrency faces additional structural challenges beyond the market reaction to tariffs.
Market Panic Spreads
The cryptocurrency sell-off mirrors broader market concerns, with U.S. stock futures pointing to a potentially disastrous Monday trading session. S&P 500 futures dropped 5.98% by Sunday evening, while Nasdaq 100 futures declined 6.2%.
Dow futures were down 5.5%, stoking fears of a “Black Monday”-style market event. The term refers to the stock market crash of October 19, 1987, when the Dow Jones Industrial Average fell by more than 22% in a single day.
Crypto liquidations have spiked to $900 million as leveraged positions get wiped out amid the market turmoil. The rapid price decline has led to questions about Bitcoin’s status as a safe-haven asset.
Ackman’s Warning
Bill Ackman, the hedge fund manager and prominent Trump supporter, has issued a stark warning about the potential economic fallout from the tariffs. In a post on X (formerly Twitter), Ackman called for a 90-day pause on the tariff implementation scheduled for April 9.
The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust.
President @realDonaldTrump has elevated the tariff issue to the most important geopolitical…
— Bill Ackman (@BillAckman) April 6, 2025
“Without the halt, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down,” Ackman wrote. He warned that the tariffs could “crush business confidence, halt investment, and lead to mass layoffs.”
“This is not what we voted for,” Ackman added. “Business is a confidence game. The president is losing the confidence of business leaders around the globe.”
The billionaire investor acknowledged the administration’s position that decades of unfair trade practices have hurt the U.S. However, he argued that rushing into a new tariff regime could have severe consequences for the economy.
Trump’s Tariff Plan
President Trump announced last week that the U.S. would impose a 25% tariff on all foreign-made automobiles. He also outlined a 10% “minimum baseline tariff” on imports and new “reciprocal tariffs” targeting countries with levies on American goods.
“Our country and its taxpayers have been ripped off for more than 50 years,” Trump declared from the White House Rose Garden. “But it’s not going to happen anymore.”
The administration’s approach to calculating tariffs, which divides trade deficit by imports, has been criticized by economists as overly simplistic. Many experts warn it could backfire and harm American consumers and businesses.
“By placing massive and disproportionate tariffs on our friends and our enemies alike… we are in the process of destroying confidence in our country as a trading partner,” Ackman cautioned in his post.
Tracy Jin, COO of MEXC Exchange, told Decrypt that the crypto market “is easily manipulated in its current state.” She predicted Bitcoin could drop to the “$52,000–$56,000 range” by summer, with Ethereum potentially experiencing even steeper declines.
Ackman framed the current moment as an opportunity for Trump to pause the tariffs and negotiate with trading partners. Without such a pause, he warned that “business investment will grind to a halt, consumers will close their wallets, and we will severely damage our reputation with the rest of the world.”
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
