It’s looking rough out there. With over $1.4 billion in crypto wiped out in 24 hours and trillions evaporating from global stock markets, the question is:
Is this the bottom—or just the start of something way worse?

Tariffs Just Nuked the Markets

On April 2, Trump dropped the hammer—announcing a new round of sweeping tariffs he’s calling “Liberation Day.” The impact was immediate:

• 25% tariffs on Mexico and Canada
  
• 34% more on Chinese goods
  
• Some imports now taxed over 54%
  

Markets responded like you’d expect—by collapsing.

In just two days:

• $5.5 trillion vanished from U.S. equities
  
• The S&P 500 dropped 10%
  
• The Dow fell more than 4,000 points
  
• Nasdaq? -11%
  
• China struck back on April 4 with their own tariffs
  

The VIX spiked to 60, a level not seen since the darkest days of COVID or 2008.

Crypto Got Wrecked, Too

Bitcoin wasn’t spared. Neither was Ethereum or any other major coin:

• $1.4B liquidated in one day
  
• BTC down 8%, bottoming at $74,400
  
• ETH plunged 17% to $1,415
  
• SOL touched $101
  
• XRP fell 16% to $1.76
  

So much for digital gold—for now, BTC still trades like a tech stock when panic hits.

Why Tariffs = Bad News for Crypto

Here’s the chain reaction in plain terms:

1. Tariffs = higher prices on imports
   
2. Higher prices = more inflation
   
3. More inflation = Fed can’t cut rates
   
4. No rate cuts = tighter liquidity
   
5. Tight liquidity = no moon for crypto
   

And just like that, Fed cut expectations for May went from 10% to 27%, as the market begs for relief.

Capitulation Mode: Everyone’s Fleeing

Markets aren’t just dipping—they’re unraveling. Here’s what we’re seeing:

• Gold dipped under $3,000/oz, despite chaos
  
• Big funds are pulling out of crypto and stocks
  
• Money is flooding into cash and short-term bonds
  

“This is full-blown risk-off,” said The Kobeissi Letter.
“Everyone’s hitting the panic button.”

How Ugly Could It Get?

If this escalates, brace yourself:

• Global trade could shrink like it did in 2008
  
• U.S. consumers might eat a $1.8T tax hit
  
• $900B in imports could disappear
  
• We could return to Smoot-Hawley tariff levels (33%+)
  

Already, big names are getting wrecked:

• Apple and Nike lost $470B combined
  
• Boeing crashed 10%
  
• JPMorgan is now warning of a 2025 recession
  

Is Bitcoin Still a Hedge — or Just Another Risky Bet?

It’s not looking pretty short-term. But some think Bitcoin’s long game is still intact:

• Jamie Coutts: “BTC is becoming a hedge against global de-risking and trade wars.”
  
• BlackRock: Called BTC “scarce, decentralized, and hedge-worthy”
  
• Michaël van de Poppe: “We may see $70K soon—but it could be a golden zone to buy.”
  
• Geoff Kendrick (Standard Chartered): “U.S. isolation is bad for fiat. That’s Bitcoin’s moment.”
  

Watch $76,500 — that’s a key resistance from earlier rallies.

TL;DR: Strap In. This Ride Isn’t Over

Short-term? Brutal. Long-term? The thesis for Bitcoin may be quietly getting stronger as fiat systems wobble.

But don’t go all in. Volatility is off the charts—and macro uncertainty is the boss right now.

As always:
Stay liquid. Stay smart. And never invest what you can’t afford to lose.