'Black Monday' in Bitcoin

Following the statements made by U.S. President Donald Trump on customs duties on Wednesday, April 2, the uncertainty created led to a collapse in both the stock and crypto markets. The price of Bitcoin (BTC) dropped to 74 thousand dollars. The price ratio of BTC to ETH fell to its lowest level in five years.

The announced tariffs include a universal customs duty of 10% on almost all imported goods, while in some countries this rate can reach 50%. Imports from China are subject to a 34% tax, while imports from the European Union face a 20% tax.

Will the 1987 crisis be repeated?

At the time of writing the BTC news, it was trading at $74,688.00. U.S. stocks were among those experiencing significant losses with this decline. Both the S&P 500 and the Nasdaq Composite Index finished the trading session on April 4 with a drop of about 6 percent. Dow futures fell by 5.5 percent.

Similarly, dark clouds dominate the Asian markets as well. Japan's Nikkei 225 index fell by as much as 8.9% on Monday morning. Taiwan's Taiex index dropped by approximately 10% after reopening.

The second largest cryptocurrency in the world by market capitalization, Ethereum (ETH), has fallen below 1,500 dollars. The total size of the cryptocurrency market was valued at 2.37 trillion dollars at the time of writing.

The sharp decline in the markets has created an environment of uncertainty, leading to speculation among investors, and comparisons were made on social media to the "Black Monday" crash of 1987.

CNBC host Jim Cramer stated in a post on his X account on April 5, "I’m trying not to panic, but I still can’t rule out the October 87 scenario."

It's tough to build a new, weaker, world order on the fly. Frantically trying to do it but don't see anything yet that takes the October 87 scenario off the table yet. Those who bottom-fished are sleeping with the fishes …so far

— Jim Cramer (@jimcramer) April 5, 2025

Bitcoin maximalist Max Keiser claimed that BTC will start to rise. In a post he wrote on X addressing Cramer, he stated, "A mega crash similar to that of 1987 will push Bitcoin to $220,000 this month as trillions of wealth seek the safest haven, Bitcoin."

Jim’s loss is Bitcoin’s gain.

A 1987 style mega crash will push Bitcoin to $220,000 this month as trillions in wealth seek the ultimate safe haven: Bitcoin.

pic.twitter.com/GGOGEMuvPF

— Max Keiser (@maxkeiser) April 5, 2025

"Cryptocurrencies are finally starting to crack"

Peter Schiff, known for his opposition to Bitcoin, stated that following the delayed reaction of the markets to the new tariffs announced by Trump, cryptocurrencies have finally begun to "crack" and wrote, "I thought the dumbest thing Trump could do would be to establish a Strategic Bitcoin Reserve, but I was wrong."

After a delayed reaction on Friday, crypto is finally starting to crack. Ether has already fallen to its lowest level since Oct. 2023, down 65% from its peak, and Bitcoin just traded below 81K, taking out last week's low. It could be a long day for those trapped in Bitcoin ETFs.

— Peter Schiff (@PeterSchiff) April 6, 2025

This article does not contain investment advice or recommendations. Every investment and trading action carries risk, and readers should conduct their own research when making decisions.