📉 Why Did Crypto Crash and Stocks Face a "Black Monday"? What Went Down on April 7

April 7, 2025, was a total nightmare for anyone with investments. In a matter of hours, the S&P 500 wiped out nearly 5% in gains, Bitcoin plummeted to $75,600, and the global crypto market lost almost $1 trillion in value. So, what went down, and why does it matter?

📦 It All Started with Trump’s Tariffs

It all kicked off when the Trump administration dropped a bombshell: major new tariffs on Chinese imports. Nearly everything from China will now face a 104% tariff—up 84% from before. The U.S. is basically saying, “We’ll negotiate… if you remove your trade barriers,” but no deal is happening anytime soon, and markets freaked.

💥 Stock Market Drama

At first, things looked chill—major stock indexes like the S&P 500, Dow, and Nasdaq were up around 4%. But by 3:15 PM (ET), it all crashed. In just a few hours:

• The S&P 500 lost $2.3 trillion in market cap
• The Dow dropped 0.8%, and Nasdaq tanked by 2.1%

Panic mode hit, and investors rushed into gold while bonds started freaking out.

💸 Bond Market Gets Wild

April 7 was nuts for the bond market. The yield on the 10-year Treasury note dropped from 4.9% to 3.87%, then shot back up to 4.18%. Why? China and other foreign debt holders were dumping U.S. Treasuries. Plus, billionaire Ray Dalio stirred the pot by suggesting the U.S. might freeze interest payments to “hostile nations,” adding more panic fuel to the fire.

👤 Who's Behind This Chaos?

Some think Scott Bessent, Trump’s Treasury Secretary, is behind the madness. Why? He might be trying to cut U.S. interest expenses by creating bond market chaos. Every 100 basis points drop in Treasury yields = $90 billion in savings. With $9 trillion of U.S. debt to refinance in 2025, causing this kind of panic could be part of the plan.

🪙 Why Is Crypto Getting Hit So Hard?

Crypto’s getting wrecked, and it’s partly due to U.S. protectionist policies. Since April 2, the “Liberation Day” actions hit the market hard. The total crypto market cap is down nearly 26% this year, with investors ditching risky assets like Bitcoin and Ethereum for safe havens like gold. Classic move in uncertain times.

🤯 What About the Fed?

Just a week ago, the markets were banking on the Fed cutting rates. But after the April 7 meltdown, that narrative flipped. Now, people expect the Fed to either hold rates or raise them. BlackRock CEO Larry Fink dropped the truth bomb: “Odds of 4–5 rate cuts in 2025? Zero.” With inflation from tariffs, the Fed might actually hike rates. Major market confusion followed.

🧭 What Does This Mean for Crypto?

Crypto’s still considered a high-risk asset. When the global markets freak out, crypto’s usually the first to get hit. As long as the market stays shaky and rates stay high, crypto’s gonna be under pressure. But once things settle down and inflation slows, we could see things turning around.

TL;DR: April 7, 2025, was a bloodbath—stocks dropped, crypto tanked, and the bond market freaked out after Trump’s tariff announcements. The S&P 500 lost $2.3 trillion, and crypto saw a 26% drop this year. Investors went into panic mode, and now everyone’s wondering if the Fed will raise rates. Crypto’s struggling, but it might bounce back once the dust settles.