Between April 6 and April 7, 2025, the cryptocurrency market suffered a sharp decline. Bitcoin collapsed by more than 10% overnight to below $75,000. Ethereum fell to $1500, hitting lows since March 2023. This led to the liquidation of futures positions of more than 441,800 traders for the amount of $1.36 billion.
Recall that on April 2, 2025, US President Donald Trump introduced a large package of customs tariffs, including reciprocal and base tariffs. Most experts called it the main reason for the collapse of the cryptocurrency market.
The Incrypted team analyzed the experts’ comments and collected their opinions on the current state of the crypto market and its future.
Reasons for the correction
Ryan Lee, chief analyst at Bitget Research, said in a comment to Incrypted that bitcoin and Ethereum have entered a critical phase of price consolidation amid escalating macroeconomic tensions. According to him, the market has become more volatile following Trump’s statements on new tariffs and concerns over a possible trade war.
In addition, Ryan Lee added that the strengthening of the US dollar and rising Treasury bond yields also contributed to the fall in the price of the first cryptocurrency.
Peter Chang, head of research at Presto Research, said in a comment to The Block that bitcoin investors have been gripped by a “sell now, think later” mindset due to the pace and scope of Trump’s imposition of new tariffs.
He said the market’s recovery will depend on three factors: the reaction of other countries, the Trump administration’s ability to develop a long-term plan, and expected actions by the U.S. Federal Reserve (Fed) to address the current instability.
Jeff May, chief operating officer of cryptocurrency exchange BTSE, explained that cryptocurrency markets historically precede stock markets over the weekend. The collapse of Asian markets on the morning of April 7 likely confirmed this observation, he said.
Matrixport experts said that the probability of the first cryptocurrency’s correction to the $73,392 mark is growing. They added that the support level at $87,000 remains an important barrier, especially after Trump’s announcement of new duties.
In addition, analysts noted that additional pressure is created by the restraint of U.S. consumers due to inflation, as well as Fed Chairman Jerome Powell’s statement that the regulator does not plan to change its policy for the time being. This could delay the positive impact on bitcoin from monetary support, Matrixport said.
Back on April 5, CryptoQuant CEO Ki Young Ju said that bitcoin’s bullish cycle has already ended due to the weak reaction of the asset’s price to the inflow of large amounts of capital.
The expert referred to an indicator that reflects the actual amount of funds that have entered the network. If it grows and the market capitalization stands still or declines, it indicates that investors are buying bitcoin, but the price is not responding — a typical signal of a weak market, Yang Ju explained.
According to him, even small purchases with low selling pressure can significantly raise the price of the asset. But now the opposite is true — despite significant capital injections, the price is barely rising due to high selling pressure. Such conditions are characteristic of a bear market, CryptoQuant CEO noted.
“And while the selling pressure could subside at any moment, historically it takes at least six months for a true reversal to occur. Therefore, short-term recovery is still unlikely,” the expert summarized.
Forecasts of experts and the market situation
Block CEO Jack Dorsey said that bitcoin will fail if it does not become a convenient payment instrument. According to him, the first cryptocurrency should be a daily means of payment, otherwise it will “turn into something you buy and forget until the next crisis.”
He added that without active use in payments, cryptocurrency will lose relevance. The expert also called for simple payment solutions that are fast, secure and private.
Investor, businessman and author of the bestseller “Rich Dad, Poor Dad” Robert Kiyosaki said that the biggest stock market crash has already begun and could turn into a depression.
In his opinion, after the collapse of “paper assets” the authorities will again turn on the printing press, devaluing the dollar. In such circumstances, he advises to pay attention to gold, silver and bitcoin.
Blogger Miles Deutscher said that it is possible to earn in the cryptocurrency sector only 10% of the time. 90% of the time the market is either stagnant or falling — that’s when you need to be patient.
“But in that 10%, there are opportunities for incredibly high profits — and that’s when you should act as decisively as possible,” Deutscher added.
Andrew Kang, co-founder of venture capital firm Mechanism Capital, predicted Ethereum will fall into the $1000-1500 range this year.
A trader and analyst under the pseudonym DaanCrypto said bitcoin volatility is declining, while the VIX volatility index for stocks closed at its highest level since the crash in 2020.
“It’s pretty unusual, […] I’m sure cryptocurrencies will experience a big move next week. Whether this movement will be up or down depends on whether stocks can find a bottom at the beginning of the week,” the expert said.
DWF Labs CEO Andrei Grachev said that if countries offer zero-tariff deals to the U.S. and the Fed lowers interest rates, stocks and cryptocurrencies will rise.
If the Fed starts printing money, bitcoin could hit an all-time high, Grachev said, adding that everything will become clear in the coming weeks.
According to Ryan Lee, bitcoin could remain stable near the $70,000 mark as the cost of mining 1 BTC varies between $60,000-$65,000.
He summarized that further market dynamics will depend on how investors interpret policy and liquidity changes in the coming weeks.
Arthur Hayes, investment director at venture capital firm Maelstrom and co-founder of the BitMEX exchange, said he has been buying bitcoin all day and plans to continue.
According to him, it is not worth buying altcoins yet, as bitcoin’s dominance rate is likely to rise to 70%. The expert also called to remember the possibility of the printing press launch.