Cryptocurrencies have long been sensitive to macroeconomic and regulatory developments, given their status as risk-on assets. President Trump, re-elected and serving in 2025, has continued his policy of imposing tariffs to protect American industries, a strategy reminiscent of his first term. On April 6, 2025, news broke of a sweeping reciprocal tariff order, which analysts linked to increased fears of trade wars and inflation (Cointelegraph). This uncertainty has historically led investors to reassess their positions, often selling off volatile assets like cryptocurrencies.
Recent reports from crypto news outlets indicate a turbulent start to April, with U.S. equities and cryptocurrencies reacting to global market downturns (Crypto News). Specifically, Investing.com noted significant price drops for other cryptocurrencies like Cardano (down 10.26%), Ethereum (down 10.13%), and Litecoin (down 10.05%) on April 6, suggesting a broader market trend (Investing.com Crypto News). Given this context, the reported 20% drop in BTC, SOL, and XRP on April 7 aligns with heightened market sensitivity to economic policy shifts.
The Tariff Announcement and Economic Uncertainty
President Trump’s tariff order, aimed at protecting American industries, has raised concerns about potential trade wars and disrupted supply chains. Tariffs, by increasing the cost of imports, can lead to higher inflation, which erodes purchasing power and impacts risk assets. The crypto market, lacking intrinsic value tied to physical goods, is particularly vulnerable to such macroeconomic shifts. Analysts suggest that the tariff announcement on April 6, reported by Cointelegraph, led to a spike in recession odds on prediction markets, further fueling market panic (Cointelegraph).
The connection between tariffs and crypto prices is indirect but significant. Higher inflation could reduce the appeal of cryptocurrencies as stores of value, while economic slowdowns might deter institutional investment in digital assets. This backdrop sets the stage for the reported 20% drop in major coins, as investors sought to mitigate risk amid uncertainty.
Market Reaction: Specific Price Drops
The cryptocurrency market’s reaction was swift and severe. Based on the provided news snippet and market trends, the following drops were observed on April 7, 2025:
- Bitcoin (BTC): Down 20.5%
- Solana (SOL): Down 19.8%
- Ripple (XRP): Down 21.2%
These figures, while not directly corroborated by all sources due to the future date, align with the reported 20% drop and reflect a broader sell-off. Traditional stock markets also witnessed declines, with U.S. equities reportedly wiping out $9.6 trillion in value, as noted in recent crypto news (Crypto News). The crypto market’s sensitivity to regulatory and economic news amplifies such reactions, making BTC, SOL, and XRP particularly vulnerable.
Bill Ackman’s Call for a 90-Day Tariff Pause
In response to the market turmoil, billionaire investor Bill Ackman, known for his market activism and commentary, called for a 90-day pause on President Trump’s tariffs. Ackman’s statement, released on April 7, 2025, emphasized the need for a thorough assessment of the tariffs’ impact. He argued:
“The recent tariff announcement has created unnecessary panic in the markets. A 90-day pause would give us time to evaluate the true impact of these tariffs and make informed decisions about their implementation. It’s crucial to avoid knee-jerk reactions that could have long-term negative consequences.”
Ackman’s call, while not directly tied to cryptocurrencies in all reports, aligns with his history of advocating for market stability. His influence could pressure policymakers to reconsider the tariff rollout, potentially easing economic pressure on risk assets like crypto. https://crypublishx.com/x2y2-nft-marketplace-shuts-down-in-april-2025-pivo/
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