The stock and crypto markets crashed on April 7, 2025. The media dubbed this day a black Monday, similar to the black Thursday of 2020, on Monday 1987 black and other “black” dates of the strongest market accidents. What does history teach us? How far are we recovery?
While the Trump administration led the trade war and imposed prices on dozens of countries during a “liberation day” (April 2, 2025), the markets began to shake, finally in fall on Monday morning of April 7, because Trump did not show signs to change his mind. Experts warn against the possible recession.
How bad was the fall, alias Black Monday?
The fall in the cryptography market was quite severe. On April 7, Bitcoin lost around 7.7% in 24 hours, while other high-level cryptocurrencies experienced more severe losses: Ether, Solana and XRP lost around 20%, the BNB experienced around 9% drop, etc. Prices repressed from 3 to 5%. About $ 600 million in leverage cryptographic positions were liquidated within 24 hours.
The US stock market has closed with relatively low price reductions. The American markets opened around 3%, but at the end of the day, prices increased. At one point, rumors about the potential 90 -day break on prices for all countries, with the exception of China, helped soften the fall. Soon, the White House denied these statements, calling them false news. The day closed with a slight drop of less than 1%. The Nasdaq has experienced the highest amplitude of a day since 2008.
In several countries, the stock market has experienced the largest accident in years. The Heng Seng reference index in Hong Kong has dropped 13%, which has been the largest decrease by one day since 1997. The Japanese reference index Nikkei closed at a high rate of 7.9%. Chinese markets have closed at a better pace. The prices of 30% against South Africa led to a 9% drop in the local market. The Australian markets decreased by 4.2%, which was the largest decrease since 2020. European markets opened 5 to 9% but closed “only” 4.7% lower, the worst result since March 2022 when the markets closed 4.9% down.
The effects of the market accident were different from one country to another. The market accident can continue while the main factors that underlie it (trade war and aggressive rhetoric towards Canada and Greenland) persist.
Was it the worst fall of a day in the history of the crypto?
The Bitcoin crash of April 7, by far, was not the worst price of a day. There was only one major drop in the equity market and cryptography in the history of Bitcoin. It was a sale of cocoan-19 in the spring of 2020.
On March 12, 2020, saw a 50%drop, after giving COVID-19 a pandemic status of the World Health Organization. The world stock market was in panic and the merchants needed money, so they sold everything they had, including the crypto.
What is important is that the other day, the price of the BTC began to increase. Twenty-four hours after the accident, he found more than half of his value, completely recovering at the end of April. The recovery payments delivered by the government in 2020 and 2021 played a crucial role in the resumption of the cryptography market. According to the Harris survey, almost 10% of Americans used recovery payments to invest in the crypto. Such an influx of retail investors helped the market to recover quickly.
In addition to the black Thursday 2020, there were other days when Bitcoin prices have experienced substantial falls. In April 2013, MT GOX, a 70% responsible exchange of crypto trade at that time, suspended its operations for 24 hours to cool the market. The BTC price has increased from $ 100 to $ 55. At the end of April, the price was already more than $ 130.
A collapse of the FTX exchange in November 2022 caused a 15% drop in the price of Bitcoin when it increased from $ 18.5,000 to $ 15.7,000. It took a few months to the market to get back completely from the drop, when whales like Tim Draper and Michael Saylor made a series of BTC purchases.
What is the next step?
Cointelegraph quotes the founder of MN Consultancy, Michael Van de Poppe, saying that the day of liberation is the culmination of uncertainty. Soon, the major players will understand the evolution of conditions and the market will start to recover. In the opinion of Poppe, the prices can remain in force from 6 to 12 months.
Several days, countries still exchange threats and requests. It seems that the culmination of uncertainty can take more time. In the past, Bitcoin has shown its ability to bounce back during economic agitation. I hope this time, it will not be something new.
Disclosure: This article does not represent investment advice. The content and equipment presented on this page are only for educational purposes.
