Crypto Market Crashes on ‘Black Monday’: Investors Liquidate Astonishing $1.3 Billion!

The cryptocurrency market experienced a huge crash on April 7, which is now being dubbed “Black Monday”. Total liquidations crossed $1.36 billion within 24 hours. The market-wide panic sell was caused by economic uncertainties and rising tensions due to President Trump’s tariffs. This market crash has sent shockwaves across the world. President Trump was seen as a pro-crypto force at the beginning of his tenure, but the current market conditions highlight that political influence is not the only factor involved. Given that, let’s take a look at how major cryptocurrencies are reacting to this crypto market crash. 

Bitcoin Leads The Crash!

Bitcoin faced the brunt of the heavy downturn. The Bitcoin price fell below $77,000, marking a 13.5% decline from its price of $87,000 at the onset of April. This sharp drop has led investors to exit their positions worth $392 million. Bitcoin’s price movement has been under consistent bearish pressure since touching its ATH of $109,356 in January. However, this crypto market crash still comes as a surprise due to its magnitude, as most investors expected Bitcoin to hold closer to $80,000 despite the predicted downturn. This crash marks one of Bitcoin’s worst starts to April, a historically significant month for risk assets.

Ethereum Continues to Suffer, Drops To Unprecedented Lows!

Ethereum (ETH) followed the Bitcoin price closely in its misfortune, plunging by 20% to $1,449. This price is its lowest since the late 2023 high. ETH also witnessed massive liquidations, amounting to approximately $328 million, as long-term holders were also forced to check out. This number is harrowing, considering that Bitcoin’s liquidations lead Ethereum’s by just $64 million. Since December 2024, Ethereum has lost over 60% of its value.

This crypto market crash comes at a time when the market is questioning Ethereum Layer-1’s viability in the presence of L2 scaling solutions. This huge drop also highlights Ethereum’s tendency to react during periods of increased volatility. Analysts have predicted that if not reversed soon, the bearish momentum will take ETH to $647. 

Solana and XRP Follow Suit, Face 14% Drop

Altcoins like Solana (SOL) and XRP were not spared by the ‘Black Monday’. Both tokens saw a 14% decline in their value. Investors also rushed to liquidate their positions as over $80 million in combined selloffs were seen for these coins. Solana’s price drop also shows that mid-cryptocurrencies are at higher risk of value loss during market fluctuations. On the other hand, XRP’s decline comes at a time when it was already battling several issues related to compliance and acceptance.  The ‘Black Monday’ also impacted other popular altocoins like DOGE, which fell by 15%, and Binance, which dropped nearly 10%. Mid-cap and smaller tokens experience losses of up to 20%, further worsening fears of a prolonged market crisis. 

Market-Wide Selloffs Cause Panic

According to statistics from CoinGlass, long-term holders of cryptocurrencies accounted for nearly 86% of all liquidations in the last 24 hours. This violent crash has forced exchanges to liquidate leverage positions as traders failed to meet their margins. Such large-scale selloffs often signal extreme market stress, which expedites price declines. If the excess leverage is cleared, conditions for a rebound may appear soon. 

The Road Ahead for the Crypto Industry

While ‘Black Monday’ has left investors in ‘no man’s land’, some experts believe that forced selling could potentially make way for recovery as excess leverages get cleared. However, with constant liquidations and economic tensions on the rise, this volatility may be here to stay for a while. For now, the Bitcoin price remains below key support levels while Ethereum struggles to find its bottom. On the other hand, altcoins are grappling with steep declines in value. As the market awaits clarity on policies and economic relationships, traders are advised to exercise caution in these testing times.