“Black Monday” — brought a chilling reminder of how fast global markets can unravel under pressure. Drawing comparisons to infamous events like Black Thursday 2020 and Black Monday 1987, this crash was spurred by geopolitical tension, economic uncertainty, and an unexpected escalation in trade war policies.
As the Trump administration pushed aggressive tariffs on dozens of nations — including a staggering 30% on South Africa — on April 2’s so-called “Liberation Day,” markets began to shake. By the time Monday morning rolled around, investors had seen enough. Panic swept across both traditional and crypto markets.
How Bad Was the Downfall?
In the crypto world, it was nothing short of brutal. Bitcoin (BTC) dropped roughly 7.7% in 24 hours. Ethereum (ETH), Solana (SOL), and XRP plummeted nearly 20%, while BNB saw a 9% drop. About $600 million worth of leveraged positions were liquidated in one day. Prices retraced by only 3–5%, with no clear recovery in sight — at least for now.
Meanwhile, U.S. stock markets initially opened with a 3% drop but managed to rebound slightly, closing with losses of under 1%. Yet, the Nasdaq recorded its highest single-day amplitude since the 2008 crisis. Internationally, Hong Kong’s Heng Seng fell 13% — its worst drop since 1997. Australia experienced a 4.2% decline, the most severe since the COVID crash of 2020. Europe wasn’t spared either, closing 4.7% lower, the worst since March 2022.
Was It the Worst Crypto Crash in History?
Surprisingly, no.
While the April 7 plunge was severe, it pales in comparison to March 12, 2020 — “Black Thursday.” That day, following the World Health Organization’s pandemic announcement, Bitcoin tanked over 50% in less than 24 hours. Liquidity vanished as traders sought cash, and crypto wasn’t spared.
However, recovery came swiftly. Within a month, Bitcoin had regained its value. Government stimulus checks and a wave of retail interest helped fuel that bounce, with around 10% of Americans reportedly using their stimulus to buy crypto.
Other major crashes offer similar lessons. In April 2013, the Mt. Gox suspension sent Bitcoin from $100 to $55 overnight, only for it to rebound past $130 by month’s end. And in November 2022, the collapse of FTX saw a 15% daily drop in Bitcoin — from $18.5K to $15.7K. It took a few months to recover, with big-name investors like Tim Draper and Michael Saylor stepping in.
What’s Next for the Market?
According to Michael van de Poppe, founder of MN Consultancy, “Liberation Day was the climax of uncertainty” — a necessary shakeout before a recovery begins. Still, with the trade war deepening and international rhetoric heating up, market stability may take time.
Poppe estimates that tariffs could last 6–12 months, keeping pressure on global and crypto markets alike. The lack of trust and clarity continues to spook investors — and the markets are a confidence game above all.
A Glimpse at the Road Ahead
History has shown that Bitcoin and the broader crypto market are surprisingly resilient. Recovery may not be immediate, but if patterns repeat, the bounce could come quicker than many expect — especially if new money or policy pivots come into play.
With the dust still settling from Black Monday, one thing is clear: Crypto may be volatile, but it’s far from finished.
