On April 7, 2025, Bitcoin experienced a significant decline, dropping below $74,700 amid rising trade tensions in the U.S. This event triggered considerable volatility in financial markets and affected cryptocurrencies.
Bitcoin Decline and Its Causes
Major tariff disputes stemming from U.S. policy have become the primary factor for Bitcoin's over 10% fall in price within 24 hours. According to experts like Geoff Kendrick from Standard Chartered, Bitcoin is seen as a hedge against these economic pressures. CITE_W_A: "Bitcoin will become a hedging tool for tariff risks in this round of trade wars."
Current Situation in the Crypto Market
The situation in the crypto market is accompanied by declines of other currencies. For instance, Ethereum is down over 14%, and Solana by 15%. As a result, liquidations in the market reached nearly $1 billion. Comments from experts like Jim Cramer from CNBC indicate that the current downturn can be likened to historical financial crises.
Recovery Prospects for Bitcoin
Despite recent fluctuations, studies show that under favorable conditions, Bitcoin could rebound. Its historical resilience in economic stress conditions may play a key role. Analysis suggests the potential for strategic regulatory changes that could support the market in the long term.
Amid instability in financial markets and issues in U.S. trade policy, Bitcoin demonstrates its dual nature as a protective instrument and an asset subject to volatility. Its future depends on regulatory changes and global economic factors.
