The Blockchain Bulletin, Apr 8: Bitcoin Plunges as Global Tensions Escalate
Hey Folks! Welcome to the latest edition of the Blockchain Bulletin, where we provide you with significant developments from the crypto space over the last 24 hours. Bitcoin saw a sharp 7.67% drop, falling to $76,947.32 after Asian markets opened. The sell-off, which had Bitcoin trading at over $83,000, was primarily triggered by President Donald Trump’s tariff plans and China’s retaliatory measures. The sudden drop from $109,225 in January showed the fickleness of the entire crypto market against global economic pressures. In just one day, $126 billion went out of the market cap of Bitcoin, creating nervousness among investors.
Apart from Bitcoin, Ethereum also faced a stiff correction, slumping 14.81% to $1,536. The liquidation activity rocked the crypto space after assets worth $976 million were wiped out. According to Coinglass data, almost 318,000 traders were liquidated, indicating market volatility. Looking forward, the decrease in the ETH/BTC ratio to its lowest in five years only reinforces the risk-averse sentiment, further flooding the market.
Meanwhile, Binance ex-CEO Changpeng Zhao revealed funding strategies for building an AI-based social media tool called “X Agent” to mimic users based on their voice and writing style. This AI feature will help users maintain their original social media personality, with content getting personalized to fit their individual voice and interests using past posts and interaction metrics.
Related: XRP Drops 23% but Targets $27.38 if It Clears $1.970 Level
As the crypto market faces various challenges, traditional financial markets had to deal with a “Black Monday” scenario. Jim Cramer predicted that growing pressure from the tech sector and global economic instability could trigger a stock market crash similar to the 1987 disaster. Fears were clearly noted with considerable plunges in Nasdaq futures and wider drop-off across global markets. These worries even jumped into crypto, worsening losses already borne by Bitcoin and other digital assets.
On the regulatory front, Hong Kong’s Securities and Futures Commission made headlines with its decision to allow Virtual Asset Trading Platforms (VATPs) to offer staking services. This initiative was conceived as a forward-thinking measure toward an equal and fair regulation of the crypto markets to make networks against risks more secure while providing retail participants with a safety net. With this move, Hong Kong plans to nurture a regulated environment for cryptocurrency, positioning it as a global strategic player in the industry.
Meanwhile, Trump’s proposal to eliminate the capital gains tax further stirred volatility. The probability of changing the policy prompted immediate reactions from the crypto community, adding to the already unpredictable atmosphere. With the tax cuts becoming permanent, the market seemed uncertain about the broader economic ramifications, contributing to Bitcoin’s swift decline.
Related: Trump Plans to End Capital Gains Tax by 2025 Nationwide
On the other hand, Solana continued its downward trend, dropping 18$ and falling below $100 for the first time since February 2024. However, trading volume surged 320.74% amid market uncertainty. This crash occurred amidst the general market selloff linked to Trump’s tariff policies, raising concerns among traders over Solana’s rally.
Consequently, the Stock Exchange of Thailand has temporarily prohibited short selling from April 8 to April 11, 2025, as part of measures developed in response to the global financial crisis. This helps to keep the Thai stock market stable against cracking pressures from the financial system.
The finance ecosystem saw cryptocurrencies and the markets witnessing a severe decline. Bitcoin, Ethereum, Solana, and XRP were ravaged after several factors, including geopolitical tensions, regulatory changes, and market fears. Against this background, developments in Hong Kong’s regulations indicate hope for a more orderly future for digital assets. Though much remains uncertain, the latest developments point to the resilience of global relegation as a key factor for any interactions with the traditional and digital arena.
