Bitcoin recorded a significant loss of nearly 6% over the day, ending the quarter down 11.7%. Its price fell to $78,539 on the night of April 6 to 7, 2025, according to TradingView data, due to rising macroeconomic tensions. At the time of writing, Bitcoin was trading at $78,904, with a market capitalization of $1.56 trillion.
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Alongside Bitcoin, Ethereum also experienced a substantial decline, falling nearly 12% to reach $1,555. The market capitalization of this asset amounted to $192.4 billion. Experts note that the overall downturn in the crypto market intensified in anticipation of the new week opening on international stock exchanges.
Reasons for the Decline in Cryptocurrencies
The GMCI 30 Index, which tracks the prices of the 30 largest digital assets, lost over 8% in a day and 33.9% since the beginning of the year. This decline was attributed to new trade tariffs announced by Donald Trump on April 2, 2025. In the first two days following the tariff announcement, losses in the U.S. stock market exceeded $5.4 trillion, the S&P 500 reached an 11-month low, and the Nasdaq 100 entered bear territory.
After the announcement of the tariffs, the crypto asset market initially showed a muted reaction, holding around $83,000. However, ahead of the new week, the sector began to lose ground. Experts expect that the intensification of economic confrontation between the U.S., China, and the EU could lead to a global recession, negatively impacting the cryptocurrency market.
Prospects for the Cryptocurrency Market
Bitcoin ended the first quarter of 2025 down 11.7%, marking the worst performance in a decade and ranking 12th over the past 15 years. Analysts at NYDIG Research believe that such a weak start to the year raises new discussions about the phase of the crypto cycle. The current decline may repeat the scenario of 2015, when the market stabilized after a prolonged downturn and began a new rise in 2016. However, unlike those times, the current macroeconomic environment remains extremely unstable.
While Trump’s election brought some regulatory clarity, including the dismissal of lawsuits by the U.S. Securities and Exchange Commission against several crypto companies, new trade pressures are shifting the focus of investors. Bitcoin’s fate after the markets open on April 7, 2025, could determine the short-term dynamics of the entire sector.
It is worth noting that Bill Ackman, CEO of hedge fund Pershing Square Capital Management, believes that U.S. President Donald Trump may postpone the introduction of tariffs.