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Bloodbath: Over $1.65T Lost in Hours as Crypto and Stock Markets Crash, Bitcoin Dips to $81K
The crypto and stock markets are reeling from extraordinary losses, with several trillion dollars wiped out in just a few hours. Data from Coinglass shows that 196,538 crypto traders have faced liquidation, losing $561 million in the last 24 hours. Interestingly, one single trader lost $12 million. During this time, Bitcoin’s price plummeted by 7.6%, …
The crypto and stock markets are reeling from extraordinary losses, with several trillion dollars wiped out in just a few hours.
Data from Coinglass shows that 196,538 crypto traders have faced liquidation, losing $561 million in the last 24 hours. Interestingly, one single trader lost $12 million. During this time, Bitcoin’s price plummeted by 7.6%, falling from $88,466 to $81,600 at press time.
The bearish sentiment in Bitcoin has spilled over into the broader crypto market, with XRP losing the $2 mark and Ethereum crashing to the $1,700 range. Overall, the global crypto market is now down by 4.4%, totaling $2.62 trillion, with $115 billion lost in the last 24 hours.
Meanwhile, in the stock market, the situation is much worse. Reports suggest that over $1.65 trillion has evaporated just hours after the U.S. stock market opened today. The biggest losers include Apple, Amazon, Nvidia, Meta, Tesla, and JPMorgan.
Bloodbath in U.S. stock market
What Has Sent the Financial Markets Tanking?
Notably, the tanking markets come amid new economic policies from the President Donald Trump administration.
On Wednesday, April 2, President Trump announced a new, sweeping tariff plan, escalating global trade tensions. The plan includes a universal 10% tariff on all imports, aiming to charge foreign nations for access to the U.S. market.
Additionally, it includes reciprocal tariffs on countries that impose tariffs on U.S. goods, set at half the rate of their tariffs. For instance, China will face a 34% tariff combined with a previous 20% tariff, totaling 54%. The U.S. has also imposed a 20% tariff on the EU and 24% on Japan.
Meanwhile, Mexico and Canada are exempt due to the USMCA. Certain goods like steel, aluminum, pharmaceuticals, and semiconductors are also excluded.
Notably, the 10% tariff begins on April 5, and the reciprocal tariffs will take effect on April 9. Trump argues that the move will counteract trade imbalances and ensure fair treatment for U.S. consumers. Meanwhile, economists expect the policy to raise prices for consumers.
Essentially, the immediate effects of these policies are visible in the crashing values of both the crypto and U.S. stock markets.
What’s Next for Bitcoin?
Meanwhile, market commentators have expressed diverging views on the market’s reaction to Trump’s tariffs. Macro investor James Lavish criticized traders selling Bitcoin in response to U.S. tariffs, claiming they “have no idea what they own.”
On the other hand, analysts argue that Bitcoin’s drop to $81K is temporary, with some projecting a rebound to $90K soon.
Gabrielle Desailly a former investment strategist, Gabrielle covers the intersection of cryptocurrency and global finance. She specializes in regulatory developments, market sentiment, and how digital assets reshape economies.
