The global cryptocurrency market saw a significant drop following the implementation of new tariffs by the Trump administration on April 5th. The tariffs targeted key trading partners like China, the EU, and Japan, raising rates significantly to as high as 34% for China. As a result, Bitcoin and Ether experienced sharp declines before showing signs of recovery. While US stock futures entered bear market territory due to these volatile conditions, cryptocurrency prices stabilized somewhat by April 7th. Cryptocurrency values decreased by over 8%, bringing the total value down to $2.5 trillion while Bitcoin saw a 1.4% increase to $78,500 and Ether rose to $1,594. Market sentiment remains deeply cautious, reflected in the Crypto Fear & Greed Index at a 23 score, indicating extreme fear among crypto investors. Analysts point to market illiquidity during weekends as contributing factors to the swift price drops. Charlie Sherry, head of finance at BTC Markets, explains that these conditions often result in sharper price fluctuations due to reduced trading volume. US stock futures also suffered heavy losses, with S&P 500 futures dropping nearly 4%, Dow Jones Industrial Average futures declining by over 8%, and Nasdaq futures also experiencing a decline. This has placed the S&P 500 futures in bear market territory with an average of $400 billion wiped out from markets daily in the past month. President Trump, defending his tariff strategy, claimed that these levies are aimed at reducing US trade deficits. The White House maintains its stance on negotiating trade terms, stating that over 50 countries have reached out to renegotiate existing agreements. Meanwhile, Treasury Secretary Scott Bessent expressed confidence in the current tariffs as a necessary measure to correct trade imbalances, urging allies not to retaliate.