On April 6-7, 2025, the cryptocurrency and stock markets experienced a significant downturn. This crash was primarily triggered by a tariff war announced by U.S. President Donald Trump, resulting in the S&P 500 index falling to its lowest point in the last 11 months. The Nikkei and China A50 indices dropped by 8% and 6% respectively.
This is reported by Business • Media
Ahead of the trading session on April 7, 2025, the markets faced a serious decline. While shares of American tech companies and indices showed substantial drops, the valuations of cryptocurrency companies proved resilient to the crisis. Donald Trump announced the imposition of reciprocal tariffs on April 2, which was another factor contributing to the decline in the stock markets.
During the following trading days, April 3 and 4, the market capitalization of companies within the S&P 500 index shrank by an impressive $5.4 trillion. By the close of the session on Friday, the index had fallen to $5,074, marking its lowest point since May 2024. For instance, shares of the Magnificent 7, which include several of the largest American tech companies, dropped by 6% on April 3, continuing to decline the next day.
On average, shares in this index fell by 5.85%, with Tesla experiencing the largest drop at 10.42%, followed by Nvidia at 7.36%, and Apple at 7.29%.
The Nikkei index, which reflects the stocks of the 225 largest Japanese companies, also decreased by nearly 8%. Similarly, the China A50 index, representing the Chinese market, fell by over 6% according to data from the aggregator Investing.
Despite the serious issues in traditional markets, cryptocurrency companies demonstrated tolerance to fluctuations. For example, shares of Strategy (formerly MicroStrategy) showed an increase of over 4% in pre-market trading. Other companies, such as MARA, one of the largest public miners in the U.S., also exhibited a slight increase of 0.6%.
Additionally, other miners, CleanSpark and Riot Platforms, showed positive dynamics on a five-day chart – increasing by 6.4% and 0.28% respectively. However, payment service providers like Coinbase and Robinhood suffered significant losses: -5.2% and -13.2% respectively over the same period, with Robinhood experiencing a deeper decline among traditional stocks.
Previously, an experiment by Standard Chartered Bank included Bitcoin in the Magnificent 7 index instead of Tesla shares, demonstrating better performance and lower volatility.