Trump performed surgery on the patient with a bold approach, but after leaving the operating table, he found that head nurse Powell refused to give the patient a blood transfusion.
Written by: 1912212.eth, Foresight News
In the early morning of April 7, after days of consolidation and volatility, the crypto market experienced a significant downturn. Bitcoin dropped from $82,000 to a low of $77,000, Ethereum fell from $1,800 to around $1,500. SOL also dropped above $100, with many Altcoins experiencing substantial declines. Tokens like SUI/BERA/ENA/AAVE saw 24-hour drops exceeding 11%.
According to Coinglass liquidation data, over 288,000 people were liquidated in the past 24 hours, totaling $891 million, with long positions liquidated at $758 million. The largest single liquidation on CEX occurred on Binance, valued at $16.38 million. On-chain, the "63,410 ETH whale" position was also liquidated due to the rapid price drop, resulting in a loss of $79.59 million.
However, some whales continued to buy the dips during Ethereum's decline. Lookonchain data shows a whale purchasing 5,227 ETH at an average price of $1,578. Additionally, the whale address 7 Siblings bought 25,102 ETH over the past 10+ hours, spending $42.66 million USDC at an average price of $1,700. They hold over 660,000 ETH (approximately $1.037 billion) and have borrowed $412 million from multiple lending protocols by pledging ETH. These lending positions remain healthy, with liquidation prices below $1,100.
With the market in bloodshed and market sentiment just recovering from neutral, the panic index has again turned extremely fearful. What happened?
US Stocks Plummet Under Tariff Clouds
Tariff clouds overshadow global markets, with US stock futures opening sharply lower and panic index futures surging.
US stock futures pared losses, with S&P 500 futures now down less than 3% (previously down 5.4%) and Nasdaq 100 futures down less than 4% (previously down 6.2%). VIX futures jumped 34.4%. US bonds rose, with 10-year Treasury yields dropping 10 basis points. In after-hours trading, Apple fell 5.5%, Tesla dropped 10%, and NVIDIA declined 9%. The Nikkei 225 and Topix indices both fell over 5%, with futures temporarily halting after hitting limit down. Spot gold returned above $3,040 per ounce, having previously touched $2,971.28.
On Sunday, Trump's senior economic officials refuted investor concerns about inflation and recession, insisting that prosperity is imminent despite global tariff-induced market turbulence. Officials, including Treasury Secretary Besent and Commerce Secretary Lutnick, stated Trump would maintain his tariff agenda.
Trump suggested the stock market might need to "take medicine".
Goldman Sachs' latest report lowered the US Q4 2025 GDP growth forecast to 0.5% and raised the 12-month recession probability from 35% to 45%, citing tightening financial conditions and policy uncertainty.
The crypto market is now closely linked to macro markets, especially US stock trends, often following market fluctuations as a liquid risk asset.
Rate Cut Uncertainty Remains
Recession fears are rising, with market expectations of Fed rate cuts increasing. Morgan Stanley strategists predict rate cuts at every FOMC meeting until January 2026.
On April 4, Trump urged Powell that now is the best time for rate cuts. However, Fed Chair Powell stated that economic growth weakness and inflation increases offset each other, maintaining the expectation of two rate cuts in 2025.
According to CME "Fed Watch" data, the probability of a 25 basis point rate cut in May is 33.3%, with a 66.7% chance of no change.
The Fed's hesitation to cut rates has led to extremely pessimistic market sentiment and increasing sell-offs.
Market Outlook
Despite the crypto market's downturn and extremely pessimistic sentiment, BTC has not yet broken the March 11 low of $76,606.
Top trader Eugene Ng Ah Sio suggested that while the current situation is unprecedented, opportunities may arise if handled carefully.
Arthur Hayes commented on the market dynamics and Trump's tariff strategy.
After the MEME market cooled, mainstream Altcoin valuations have significantly declined. During this violent correction, investors are experiencing pain, but potentially valuable projects might gain market favor once the Fed begins rate cuts.
