The cryptocurrency market is currently experiencing a sharp decline, where the total market capitalization has dropped to $2.52 trillion from its peak of $3.61 trillion. This indicates a decline of 9.8% in the last 24 hours. Since the beginning of Trump’s second term on January 20, the cryptocurrency market till today, April 7, 2025, has lost a whopping $1.111 trillion in value.
The main reason for this market crash is Trump’s statement on trade tensions. His recent actions have led to increased market volatility in the cryptocurrency market. Trump’s emphasis on Tariffs and criticism of past trade policies have increased economic uncertainties in the markets across the globe.
As of April 7, 2025, the fear and greed index, a tool that is used to measure market sentiment, has dropped down to 23, indicating extreme fear amongst crypto investors. This also indicates that the investors are currently hesitant to make any move given the market volatility.
Arthur Hayes Optimistic About Bitcoin
Despite the market downturn, some market analysts remain super optimistic about the future of cryptocurrencies. Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, posted today on social media platform X, formerly known as Twitter, and let the world know that he has been actively buying Bitcoin throughout the day.
According to Hayes, Bitcoin domination could account for about 70% of the total cryptocurrency market capitalization. This comment from Hayes suggests that the investors are currently focused on cryptocurrencies that are established like Bitcoin and Ethereum rather than exploring other altcoins, which he refers to as “shitcoins”.
Hayes also noted that with the current economic challenges, there is a high possibility of increased money printing. If this happens, it could potentially benefit the cryptocurrencies in the long term. He is committed and focused on Bitcoin and suggests that investors avoid over-investing in less stable cryptocurrencies or altcoins.
At press time, the price of Bitcoin stands at $76,861.04 with a dip of 7.2% in the last 24 hours as per CoinGecko.
Cryptocurrency Market Crash in the Past
Cryptocurrencies have faced several downturns in the past, followed by major recoveries as well. For example, the 2013-2015 crash saw Bitcoin drop from $1,127 to $172 but it rebounded by 2016.
Then there is the 2018 crypto winter where the cryptocurrency market saw a significant decline, only to recover by 2020 due to increased institution adoption.
The 2022 crash was the perfect example of a crash driven by macroeconomic pressures and project failures. The recovery was established due to increased blockchain applications gaining attraction.
The same can be expected this time as well, with recoveries being driven by increased adoption, regulatory clarity, and innovations within the segment.
Also Read: WazirX Restructuring Scheme Approved with 93.1% Creditor Support
