Biggest Crash Since 2020: Stocks Plunge, Bitcoin Stands Strong

by Gavin Gill


The U.S. stock market faces an unbelievable $3.25 trillion loss on April 4—an amount that surpasses the total value of the whole cryptocurrency market. 

The big drop in the market happened because investors were worried about President Donald Trump’s newly announced tariff policies, which some people think could push the economy and cause a slowdown.

The whole crypto market capitalization remained at $2.68 trillion at the time of the US stock market slowdown; the stock market lost around $570 million more in one day than the total value of all crypto sectors combined. 

This big difference has made people look again at how strong digital assets like Bitcoin can be when regular financial markets are in trouble.

Nasdaq 100 Joins Bear Market as Tariffs Unsettle Investor Sentiment 

The tech-heavy Nasdaq 100, which includes many tech companies, took the biggest hit on April 4, dropping 6% in a single day and falling enough for experts to now officially call it a bear market.

Biggest Crash Since 2020: Stocks Plunge, Bitcoin Stands Strong 1

This is the biggest single-day drop for the index since the crash caused by COVID-19 on March 16, 2020. Out of the ‘Magnificent Seven’ stocks, Tesla (TSLA) was the worst performer, dropping 10.42%. Nvidia (NVDA) was next with a 7.36% drop, and Apple (AAPL) went down 7.29%.

The broad losses show that investors are more worried about how Trump’s new policies will affect the economy. The Kobeissi Letter, a popular information source, revealed that the US stock market has now lost a combined $11 trillion since February 19.

It also said that there is now more than a 60% chance of a recession, mainly because of Trump’s major new tariff policies. 

According to the reports, there was an announcement on April 2 that Trump’s new order adds a basic 10% tariff on all imported goods and sets matching taxes on countries that charge high taxes on U.S. exports.

Trump said the new rules are aimed at making things fair and balanced, claiming that U.S. import taxes will be about half as high as what other countries charge on American goods. 

Bitcoin Stays Strong as U.S. Markets Disruption

While the U.S. stock market lost trillions, Bitcoin was still surprisingly stable, strengthening its reputation as a possible way to protect against big economic problems. Crypto trader Plan Markus said on social media that even though the whole stock market is falling, Bitcoin is staying strong.

Even people who did not prefer Bitcoin before are starting to observe. Dividend Hero, a stock market expert with over 200,000 followers on X, said that even though he used to blame Bitcoin, its strength during the current financial troubles has caught his attention. 

A Key Moment for Market View?

This difference is starting bigger talks about how decentralized finance could help in a world dealing with trade barriers and unstable money systems. 

While the U.S. stock market is still sensitive to present policy changes, the crypto market seems to be staying on a more stable course—at least for a short time.

Read also:- JPMorgan Forecasts US May Hit Recession in 2025 Due to Trump’s Aggressive Tariff Hikes

Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing. 

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