Key Takeaways
- The global equities markets dropped to historic lows as Trump’s tariffs on all goods imported into America took effect on April 3. This has mounted fears among investors about a potential “Black Monday”-style sell-off event that could create an economic slowdown.
- BTC dropped below $80,000 for the first time in three months, while ETH slid to $1,590 and SOL plunged below $100. The overall crypto market capitalization fell by 10% to $2.57 trillion. Liquidations across the market hit $900 million, with $300 million resulting from Bitcoin long and short position exits.
- Investors are offloading risk across all asset classes, the result of mounting trade tensions and macro uncertainty. The Trump administration has imposed a 10% baseline tariff on all imports and a reciprocal tariff on specific countries, amounting to half of what those nations levy on American goods.
- Analysts have warned that the economic “nuclear war” announced by Trump will result in business investments grinding to a halt, consumers closing their wallets, and America ruining its global reputation. However, with several nations ready to negotiate terms with the U.S. President, the markets could potentially project a relief rally.
On Sunday evening, U.S. markets tumbled to new lows amid fears of a potential “Black Monday” selloff event. Investor sentiment collapsed across equities and crypto due to the latest escalation of President Trump’s trade war against nearly 200 countries.
Global Equities And Crypto Markets Tumble To Historic Lows As Trump’s Tariffs Go Into Effect
S&P 500 futures dropped 5.98%, while Nasdaq 100 futures and Dow Jones futures slid 6.2% and 5.5%, respectively, setting the stage for a potentially turbulent week on Wall Street. Meanwhile, Bitcoin (BTC), the world’s largest cryptocurrency by market cap, dropped to its lowest valuation in over three months as it traded in the $77,700 range. Other leading cryptocurrencies fared far worse, with Ethereum (ETH) plunging by 11% to $1,590 and Solana (SOL) losing 10% of its value to change hands at $107 on Sunday.
The moves followed weeks of mounting trade tensions and macro uncertainty, with investors offloading risk across all asset classes. The term “Black Monday” is trending across social media, which is a reference to the Dow Jones Industrial Average losing nearly one-quarter of its value in a single session in October 1987 after then-Treasury Secretary James Baker threatened a currency war.
The situation in the equities market has gotten so bad that authorities have imposed a temporary ban on short-selling to stabilize the market.
According to data compiled by CoinGlass, liquidations across the crypto market spiked to roughly $842 million, which includes more than $300 million in BTC long and short futures positions. The global crypto market cap fell 10% to 2.57 trillion.
The sell-offs follow Trump’s sweeping new tariffs on major U.S. trading partners, which went into effect on Saturday, reigniting fears of a prolonged trade war and global economic slowdown. Those measures include a 10% baseline tariff on all goods imported into America, alongside significantly higher reciprocal tariffs targeting specific countries and a 25% tax on all foreign-made automobiles.
Chinese imports are subject to a 34% tariff, while those from the European Union face a 20% tariff. Trump’s country-specific tariffs are designed to mirror the perceived trade barriers that those nations impose on U.S. products.
Analyst Warns Trump’s “Economic Nuclear War” Could Affect Business Investments And Consumer Spending
Billionaire hedge fund manager Bill Ackman wrote in an X post that if the U.S. launches an “economic nuclear war” on every country, then business investment will “grind to a halt”, consumers will close their wallets and pocket books, and the country will “severely damage” its reputation with the rest of the world. He has called on Trump to fix the unfair tariff system before going forward. Ackman warned that the country is headed for a “self-induced, economic nuclear winter”, and the President should start “hunkering down”.
Speaking to crypto publication Decrypt, Pratik Kala, head of research at Apollo Crypto, said that financial markets may be entering a phase of heightened uncertainty with “history book implications”. He noted that this could result in a “prolonged trade war” and that Trump is following the “Art of the Deal” playbook – referencing the president’s best-selling book by the same name. Kala pointed towards two of the book’s core principles – “make them need you” and “protect the downside” – suggesting that Trump may be focusing on leverage ahead of potential negotiations with America’s trading partners.
While he cautioned that volatility is likely to remain elevated, the pullback could offer opportunities for re-entry for traders willing to take the risk. He noted that this is a good time to “start dabbing again” in small sizes as some deals and negotiations are expected to take place soon.
Kobeissi Letter Predicts A Bounce Back As Countries Start Trade Negotiations With The U.S.
The Kobeissi Letter, a well-reputed macro newsletter, said in a Sunday X post that the market action had “lost its orderly nature” and was now entering a fear-driven phase as investors are starting to pull capital from higher-yielding assets, accelerating risk-off flows across global markets. Gold futures briefly fell below $300/ounce, indicating that even haven assets are getting dumped, as the firm noted that investor sentiment was nearing levels last seen in March 2020.
Retail investors sold off $1.5 billion in equities during a 2.5-hour window on Friday, recording the largest intraday outflow in history. Institutional capital also rotated out of U.S. equities, with March 2025 marking the sharpest exit in years. As per the latest AAII sentiment survey, about 62% of investors are bearish about market prospects, which is the third-highest reading on record, while bullish sentiment stood at just 21.8%.
Kobeissi has warned that a selloff was likely near “capitulation” and a bounce back would be “tactical, and not fundamental”. The firm noted that even the worst bear markets see relief rallies.
Markets are now looking forward to the U.S. opening on Monday and fresh new data on inflation that is due later this week for the next directional catalyst.
At the time of writing, Bitcoin (BTC) is trading at $76,810 – down 7.93% in the last 24 hours.