The cryptocurrency market experienced a significant downturn on April 7, with Bitcoin leading the decline.
Key Market Movements:
- Bitcoin dropped over 9% in 24 hours, briefly falling below $75,000** — its lowest level since November 2024. At press time, Bitcoin recovered slightly to **$75,170.
Other major cryptocurrencies saw steeper losses:
- Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE) all plummeted more than 15%.
Investor Impact:
The volatility triggered widespread panic, particularly among bullish traders. According to CoinGlass:
- 446,200 investors were liquidated in 24 hours.
- Total liquidation volume reached $1.38 billion, with long positions bearing the brunt of losses.
Market Analysis:
- 2025 Performance: Bitcoin has declined 15% year-to-date, attributed to global economic uncertainties.
Divergent Outlooks:
- Bearish View: CryptoQuant CEO Ki Young Ju argues the Bitcoin bull cycle has ended, citing diminished capital inflows and predicting a prolonged recovery period (minimum 6 months).
- Bullish Case: Bitwise analyst Jeff Park suggests Bitcoin could attract safe-haven demand amid inflationary pressures, driving long-term price appreciation.
Regulatory Developments:
- Russia's Central Bank proposed stricter controls on cryptocurrency use for domestic payments, aiming to prevent integration with national currency systems. However, it may allow qualified investors to access crypto markets, while limiting retail participants to derivatives.
FAQ: Cryptocurrency Market Collapse
Q: Why did Bitcoin crash below $75,000?
A: The drop reflects macroeconomic tensions and profit-taking after Bitcoin's 2024 rally. Algorithmic trading may have exacerbated the sell-off.
Q: Should investors buy the dip?
A: High volatility warrants caution. Diversify and consider dollar-cost averaging rather than timing the market.
Q: How does Russia's crypto policy affect global markets?
A: While localized, stricter regulations could influence other governments' approaches to crypto oversight.
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