The total market capitalization of the crypto dropped by 30% compared to its peak in December 2024, going from 3.9 billions of dollars to 2.7 billions of dollars in April 2025. This significant decline occurs among the prices of the world market triggered by the new prices announced by President Trump on April 2. The prices, which entered into force on April 5. The announcement has shaken investors in several asset classes, including cryptocurrencies, many of which adopt a risk approach.
Bitcoin has succeeded relatively better compared to other digital assets, its market domination of almost 60%. The cryptocurrency fell at $ 74,500, but it remained more resilient compared to high-risk altcoins, which have undergone much greater losses. Smaller tokens, NFT and other speculative cryptographic assets have experienced strong drops, reflecting a wider trend of investors looking for safer assets in the cryptographic ecosystem. The correlation between cryptographic markets and traditional actions have been strengthened in recent months, the two sectors reacting in a similar way to the uncertainty of economic policy.
As of April 6, the American stock market also took a hit, with term contracts for the S&P 500, the Nasdaq and Dow Jones considerably. Bitcoin experienced more than 6% in 24 hours, while ether dropped by more than 12%. The total crypto market capitalization at the time amounted to 2.5 billions of dollars. According to analysts, the drop in prices was exacerbated by low liquidity on weekends, which makes the market more sensitive to significant sales. The Crypto Fear & Greed index recorded a score of 17, indicating an extreme fear of market players.
Despite the slowdown, some investors see an opportunity for a Bitcoin rally. The co-founder of Bitmex, Arthur Hayes, has hypothesized that the prices could possibly lead to a Bitcoin rupture. The Secretary in the United States of the Treasury, as well as other officials, warned against other reprisals, because the current ones already cause significant disruptions in world trade. However, Trump remains categorical that prices are necessary to approach the trade deficits of the United States, saying that they already brought tens of billions of dollars to the country.
The current market situation has led to a considerable uncertainty, with many cryptographic assets which make it possible to evil and traditional stock markets also under pressure. The Trump administration’s decision to impose prices has raised concerns about the future of world trade, more than 50 countries have contacted new transactions. As the situation evolves, it remains to be seen whether Bitcoin’s relative force will continue to hold or if the wider cryptography market will follow the performance of traditional markets in the face of these policy changes.
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