Industry players have labeled today, April 7, the crypto black Monday, a sentiment drawing from the bloodbath over the weekend.

Over the past two days, over $1 billion in long and short positions were wiped out by the weekend volatility.

Crypto Black Monday After Weekend Bloodbath

Data on Coinglass shows up to $116.59 million worth of positions were liquidated on Saturday, April 5. This comprised $33.02 million and $83.57 million in short and long positions, respectively.

The next day, the volume of traders and investors blown out of the water increased as crypto liquidations came in over $850 million. Like the day before, the lion’s share of these liquidations was long, at $743.115 million, against $107.881 million short positions.

“In the past 24 hours, 320,444 traders were liquidated, the total liquidations come in at $985.82 million,” Coinglass noted.

This volume of liquidations has fueled widespread pessimism across the crypto market. Data on CoinGecko shows the total crypto market cap is down by over 10% to $2.5 trillion.

Among the crypto top 10, XRP price is leading the crash, down by over 15.4% to trade for $1.7 as of this writing. Likewise, Ethereum’s price was down by 14.3%, selling for $1,480 at press time.

Analysts on X (Twitter) are buzzing about the potential for a historic crash reminiscent of “Black Monday.”

“Tomorrow [meaning April 7] is shaping up to be Black Monday 2.0,” analyst Maine remarked.

“Black Monday” refers to a significant and sudden stock market crash on October 19, 1987. That day, major stock indices worldwide plummeted, with the Dow Jones Industrial Average (DJIA) in the United States dropping by 22.6%. This marked its largest single-day percentage decline in history.

Against this backdrop, panic ensued as trading volumes overwhelmed markets. The lack of mechanisms to pause trading during extreme volatility allowed the free-fall to continue unchecked.

Following the massive liquidations, data on Google Trends shows global “black Monday” searches at peak levels.

“Bearish sentiment is arguably near its highest levels in history,” The Kobeissi Letter remarked.

Panic Week: What’s Behind Crypto Black Monday?

The renowned market commentary attributed the gloom to uncertainty surrounding proposed tariffs, describing “Black Monday” as the consensus view. Based on this, analysts at The Kobeissi Letter predict “short-term capitulation” this week.

“Down then up,” analysts wrote, hinting at a volatile but potentially rebounding market.

This sentiment aligns with the AAII Sentiment Survey, which reported a striking 61.9% bearish outlook. Notably, this is double its historical average of 31.0%.  

“Black Monday 2.0,” TheMaineWonk warned.

Analyst Duo Nine supports this supposition. He warns that Trump tariffs could dismantle global supply chains, reduce productivity, and lead to a prolonged bear market for crypto. However, he believes this could last 1-2 years if a recession hits.

“If the US does not make a U-turn soon, then the only conclusion is that this is intentional and the damage will only increase with time. Unfortunately, for crypto, this means the start of a prolonged bear market. It can last 1-2 years or more if a global recession starts,” Duo None explained.

While tariff fears dominate, contrarian investors might view the extreme pessimism as a buying signal. This perception is based on the assumption that when such dire predictions become mainstream, the market bottom may be near. Such a move would offer opportunities amid peak fear.

Not everyone agrees with the apocalyptic tone. Ryan Wollner, founder of Pearpop, urged caution against overblown narratives on X. He also dismissed comparisons to the 1987 crash.

“I think we might only be looking at a 2-3 week transition, and then we will see people buying back in once the tariffs are more understood, “Wollner said.

Wollner suggested savvy traders could profit by selling now and buying low soon. He emphasized that unlike past recessions driven by fraud, this downturn reflects a temporary shift, with funds likely flowing to US companies and tariff-favored nations.  

BeInCrypto data shows Bitcoin is down by nearly 8% in the last 24 hours to trade for $77,030 as of publication time.

As markets brace for turbulence, opinions remain between impending doom and opportunistic rebounds.

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In the last two months, Bitcoin price has plunged by over 23% in a prolonged market correction. Significant portions of this decline have been attributed to a series of new US tariffs announced in February, March, and most recently April. 

Despite the short-term bearish effects of this macroeconomic development on the crypto market, popular crypto analyst Miles Deutscher theorizes that BTC could substantially benefit from the long-term effects of these policy decisions.

Short-Term Chaos, Long-Term Clarity: Bitcoin Tipped For New ATH

In a recent X post, Deutscher states that Bitcoin is on course for a new all-time high despite current market uncertainty. The analyst explains that while recent trade and economic policy changes by the administration of US President Donald Trump may be exerting a negative market effect, the ensuing sequence of events from these decisions can prove bullish. 

Firstly, Deutscher states that recent economic decisions by the US government show intentions to induce short-term pain that could weaken the dollar and interest rates which should be beneficial for Bitcoin and other crypto assets. 

However, the new import tariffs are likely going to discourage the purchase of US Treasury Bills forcing a reliance on domestic buyers which triggers liquidity tightening. As Bitcoin is sensitive to liquidity, the contraction of global liquidity will cause further price falls as investors move their funds to safer assets. 

Eventually, the crypto market is expected to bottom out pricing in recession fears. By the time an official recession is announced, the market could be stable and anticipate an economic response by the Federal Reserve.

At this junction,  the US Apex Bank is likely to announce a rate cut clearing the way for quantitative easing (QE). However, while this QE may not occur until 2026, Bitcoin will experience a dollar liquidity boost from other economic tools including repurchase agreements,  Bank Term Funding Program, and Treasury bill purchases. 

Following this development, Bitcoin is expected to embark on an upward trajectory. The “top quality” altcoins will potentially follow the market leader while other tokens with little to no utility shrink. Once Bitcoin nears or hits a peak price, the altseason will kick in. 

Deutscher explains it is currently difficult to predict the crypto market and US policies in the short term i.e. 1-12 weeks. However, his forecast is likely to roll out in the coming months placing Bitcoin in a strong position for a new all-time high between Q3 2025 and Q1 2026.

BTC Market Overview

At the time of writing, Bitcoin was trading at $83,313 following a 0.90% gain in the past week. However, the asset’s daily trading volume is down by 68.68% and is valued at $14.25 billion.

Featured image from The Conversation, chart from Tradingview

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The first quarter of 2025 was dominated by talks of the altcoin season, as is usually the case when the bull cycle is ending. In past cycles, capital tends to rotate from Bitcoin to other cryptocurrencies as investors look for maximum gain before the arrival of the bear market.

However, the story has been very different for the cryptocurrency market so far this year, with most large-cap assets failing to enjoy the same capital rotation seen in past cycles. The latest on-chain data shows that Bitcoin has continued to dominate the crypto market, outperforming all categories of altcoins.

Is It Time To Buy Altcoins?

In an April 5 post on the X platform, pseudonymous analyst Darkfost shared an interesting on-chain insight into the performance of all altcoin categories relative to the world’s largest cryptocurrency. According to the online pundit, the altcoins are underperforming compared to Bitcoin in terms of market capitalization growth.

In their post, Darkfost compared the market cap growth of Bitcoin, large-cap altcoins (the top 20 largest altcoins), and mid-to-small cap altcoins by calculating the difference between their 365-day and the 30-day moving average (MAs). According to the analyst, the variation between the 365-day MA and the 30-day MA serves as an indicator of growth momentum.

Typically, when the short-term moving average (30-day MA) rises faster than the long-term moving average (365-day MA), it implies rapid market cap growth. On the flip side, a reduced growth momentum is indicated by a lagging 30-day moving average.

Source: @Darkfost_Coc on X

As observed in the chart above, Bitcoin is outpacing the large-cap and mid-to-small-cap altcoins in terms of their market cap growth. Darkfost noted that this difference in the growth ratio has reached a level last seen in October 2023, a period correlated with a brief altcoin rally and subsequently BTC’s dominance.

The analyst further highlighted that when this growth ratio turns negative, it often signals that a strong correction has occurred. Historically, a negative ratio might present a potential buying opportunity for investors looking to get into the market.

Bitcoin And Ethereum Price Quick Look

As of this writing, the price of BTC stands at around $83,500, reflecting no significant movement in the past 24 hours. At the same time, the ETH token is valued at around $1,805, with no change in the past day.

While the premier cryptocurrency dropped by about 15% in the first quarter of 2025, Ethereum lost almost double its value in the same period. This gap in performance underscores how woeful the “king of altcoins” has been in the past few months.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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