The cryptocurrency market experienced a significant downturn on April 7, with total market capitalization dropping by 10% to $2.41 trillion. This decline is attributed to escalating US-led trade tensions and investor concerns over a looming global recession. Bitcoin plunged to $74,434 on Bistamp, marking its lowest point since November 2024, while Ether dropped to $1,400, reflecting a 16% loss in 24 hours. Trading volumes surged by 293%, indicating intense sell-side activity. Over $1.4 billion in crypto positions were liquidated within a day, compounding fears and selling pressure. The overall market capitalization fell over $350 billion from a high of $2.67 trillion on April 5, and fears of inflation surged due to newly announced tariffs, leading to increased expectations for Federal Reserve rate cuts. This environment creates further risk-off sentiment among investors, propelling the bearish trend in the crypto space.

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