Black Monday Strikes Again: Will Crypto Ever Bounce Back? đŸ˜±

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Ah, Black Monday. A day of great tragedy for markets, yet it wasn’t the first time such a calamity has struck. On April 7, 2025, stock and crypto markets fell off a cliff, and media outlets quickly labeled it the latest in a long line of “Black” days: Black Thursday of 2020, Black Monday of 1987, and so forth. A fascinating tradition, isn’t it? So, what have we learned from history, and how much longer will we be stuck in this miserable pit of despair? 🍿

To set the stage: the Trump Administration, on its special “Liberation Day” (April 2, 2025), decided it was time to wage a trade war, slapping tariffs on dozens of countries. Predictably, the market started to wobble. By April 7, it collapsed—unsurprisingly—after Trump showed no signs of backing down. Experts, bless their hearts, began warning about a looming recession. How much of a surprise, really?

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How bad was the downfall, aka Black Monday?

It was *bad*, my friend. The crypto market took a nosedive of truly tragic proportions. Bitcoin, that resilient but temperamental beast, lost a relatively modest 7.7% in just 24 hours. But don’t be fooled. Other cryptocurrencies took a harder hit. Ether, Solana, and XRP saw losses of around 20%. Even BNB couldn’t escape, with a 9% decline. And let’s not forget about the $600 million in leveraged positions that were liquidated. Oh, the sweet, sweet carnage. đŸ€Šâ€â™‚ïž

The U.S. stock market was a bit of a mixed bag. It opened with a 3% drop but, as the day went on, there was a glimmer of hope when rumors started floating about a 90-day tariff pause (excluding China, of course). Naturally, the White House promptly shot those rumors down, calling them “fake news.” By the end of the day, stocks had only dipped by less than 1%. Oh, the drama!

This is the timeline of what happened that moved FOUR TRILLION DOLLARS on the market just now:

1) Kevin Hassett gives an unremarkable Fox interview at 8:24 a.m. ET

2) @atrupar clipped it, as he does, at 8:33 a.m. ET (and it gets not much notice)

3) @DeItaone “misinterprets”


— Doug Landry (@dougblandry) April 7, 2025

Around the globe, the effects were equally chaotic. In Hong Kong, the Heng Seng index tumbled by 13%, the largest single-day drop since 1997. In Japan, the Nikkei index didn’t fare much better with a 7.9% decline. Markets in China, however, were relatively tame, for a change. South Africa’s market dropped 9% thanks to the hefty 30% tariff, and Australia, well, they too faced a 4.2% drop, the worst since 2020. Europe also saw a significant fall—down 4.7%, the worst since March 2022. Oh, the sweet sting of a bad day in the market!

The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust.

President @realDonaldTrump has elevated the tariff issue to the most important geopolitical


— Bill Ackman (@BillAckman) April 6, 2025

The crashes varied from one country to another, and the storm seems far from over. But don’t fret, it’s just the beginning. As the world hurls insults and tariffs around, there’s no end in sight to this uncertainty. Hooray. 🙄

Was it the worst single-day downfall in the history of crypto?

Ah, the crypto market. Known for its wild, unpredictable mood swings. While the April 7 crash was certainly nasty, it wasn’t the absolute worst in Bitcoin’s storied history. That honor goes to March 12, 2020, when the world was hit with a double-whammy: COVID-19 and a mass panic sell-off. Bitcoin lost a staggering 50%, but not to worry—within 24 hours, it regained half its value, and by the end of April, it was back on top. But of course, that was the magic of stimulus checks. You know, those lovely government handouts that had a surprisingly big impact on crypto recovery. đŸ€‘

There were other crashes, too. Take April 2013, when Mt. Gox—the exchange that controlled 70% of the crypto market—suspended its operations for 24 hours. Bitcoin dropped from $100 to $55, only to shoot back above $130 by month’s end. And then there was the FTX collapse in 2022, which caused a 15% drop in Bitcoin’s price. It took months to recover, but the whales—Tim Draper and Michael Saylor—came to the rescue with their big purchases. 💾

What’s next?

According to Michael van de Poppe, the founder of MN Consultancy, we’ve just reached the peak of uncertainty. But don’t panic—soon, the big players will figure things out, and recovery will begin. Of course, this is assuming the tariffs stay in place for no more than 6 to 12 months. Could it really take that long? Don’t bet your life savings on it.

So, here we are, weeks into a global game of political chicken, where countries exchange nothing but empty threats and demands. But fear not! If history tells us anything, it’s that Bitcoin has the resilience of a cockroach. It will bounce back. Hopefully. đŸ€ž

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2025-04-08 14:56