The stocks and crypto market crashed on April 7, 2025. The media was dubbed this day, as well as other “black” dates in Black Thursday, 2020, Black Monday, 1987, and the most powerful market crash. What does history tell us? How far are we from recovery?
When the Trump administration fought a trade war and imposed tariffs on dozens of countries on the “Liberation Day” (April 2, 2025), the market began to shake, and eventually plunged as Trump showed no signs of mind changing. Experts warn of possible recession.
How bad was Black Monday, aka Black Monday?
The downfall of the crypto market was quite serious. On April 7, Bitcoin lost around 7.7% in 24 hours, but other top cryptocurrencies saw severe losses. Ether, Solana and XRP lost about 20% and BNB fell about 9%. Within 24 hours, approximately $600 million in exploited crypto positions were liquidated.
The US stock market closed with a relatively small price drop. The US market fell by about 3%, but prices had risen by the end of the day. At one point, rumors about a potential 90-day suspension of tariffs in all countries except China helped ease the downfall. Soon, the White House has denied these claims and called them fake news. The day ended with a slight decrease of less than 1%. Nasdaq saw the highest daily amplitude since 2008.
In some countries, the stock market has experienced its biggest crash in years. Hong Kong’s benchmark Heng Seng index saw a 13% decline. This is the biggest day drop since 1997. The Japanese benchmark Nikkei index closed 7.9% at a better speed. The Chinese market was closed at a better speed. The 30% tariff on South Africa fell 9% in the local market. The Australian market closed 4.2%. This was the biggest decline since 2020. The European market fell 5-9%, but closed 4.7% lower.
The impact of market crashes varies from country to country. As the main factors behind it persist (trade wars and aggressive rhetoric towards Canada and Greenland) persist, market crashes could continue.
Was it the worst day’s downfall in cryptography history?
The Bitcoin crash on April 7th was not the much worse day’s price drop. In Bitcoin history, there has only been one major drop in stocks and crypto markets. This was a Covid-19 related sale in the spring of 2020.
On March 12, 2020, there was a 50% drop after giving Covid-19 pandemic status by the World Health Organization. The global stock market was panicking and traders needed cash, so they were selling everything, including crypto.
The important thing is that the prices of BTC began to rise the other day. 24 hours after the crash, it regained more than half its value and was fully recovered by the end of April. The stimulus payments handed over by the government in 2020 and 2021 played a key role in the recovery of the crypto market. According to Harris’ polls, nearly 10% of Americans used stimulus payments to invest in crypto. This influx of retail investors helped the market recover quickly.
In addition to Black Thursday in 2020, there were other days when Bitcoin prices experienced a significant downfall. In April 2013, MT Gox, the exchange responsible for 70% of crypto trading at the time, closed 24 hours a day to cool the market. BTC prices fell from $100 to $55. By the end of April, the price had already exceeded $130.
The collapse of the FTX exchange in November 2022 led to a 15% drop in Bitcoin prices per day as they fell from 18.5K to $15.7k. When whales like Tim Draper and Michael Saylor made a string of BTC purchases, it took the market several months to fully recover from decline.
What’s next?
Cointelegraph says the founder of MN Consultancy, Michael Van de Poppe, that the release date is a climax of uncertainty. Soon, the major players understand the changing conditions and the market begins to recover. In Poppe’s opinion, tariffs could remain between six and 12 months.
A few days later, the country is still exchanging threats and demands. The climax of uncertainty seems to take time. In the past, Bitcoin has demonstrated its ability to rebound amidst economic turmoil. Hopefully this time, it’s nothing new.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
