Cryptocurrency markets plunged after U.S. stock futures tanked following the Trump administration’s announcement of sweeping global tariffs. The U.S. imposed a blanket 10% tariff starting April 5, with harsher rates for specific regions—China at 34%, the EU at 20%, and Japan at 24%. The aggressive move sparked panic across markets, dragging crypto down with it.

Bitcoin tumbled over 6% in 24 hours to around $77,883, while Ether dropped more than 12% to $1,575, according to CoinGecko. The total crypto market cap shrank by over 8% to $2.5 trillion. Some recovery followed, with Bitcoin slightly rebounding to $78,500 and Ether rising to $1,594. Still, market sentiment remains grim—the Crypto Fear & Greed Index hit 23, signaling “extreme fear.”

Charlie Sherry, head of finance at BTC Markets, said Sunday illiquidity made the sell-off worse, noting a few large trades can rapidly move the market. He blamed the sudden tariff hike as the clear trigger.

Despite the panic, some traders see potential upside. BitMEX co-founder Arthur Hayes speculated that market instability could eventually push investors toward Bitcoin, potentially sparking a rally.

The stock market didn’t escape the chaos. S&P 500 futures dropped nearly 4%, Nasdaq futures slid, and Dow futures plummeted over 8%. Analysts now warn that U.S. stocks have shed an average of $400 billion daily over the last month. If the downturn holds, it could mark one of the worst three-day drops in history.

On Truth Social, Trump defended the tariffs, claiming they are needed to fix trade deficits and calling them a “beautiful thing.” He denied trying to trigger a crash, but added, “sometimes you have to take medicine to fix something.”