Ever since U.S. President Donald Trump announced “Liberation Day” tariffs, global stock markets have lost over $5 trillion USD in just 48 hours, almost doubling the total market cap of the crypto sector. Amidst this uncertainty, cryptocurrencies have emerged as a potential hedge, gaining attention from both retail and institutional investors.
On April 2, President Trump announced a reciprocal tariff against 25+ countries, including some of its strongest allies. The radical move by the Trump administration resulted in a major setback for global stock markets. According to a report in Reuters, over 5 trillion dollars were wiped off Wall Street in 48 hours.
Global Market Crash due to Liberation Day Tariff
Hours after U.S. President Donald Trump announced reciprocal tariffs against 25 countries, global stock markets started tumbling. Nasdaq crashed into a bear market, posting its largest 2-day decline since the covid-induced global pandemic.
Nasdaq slid 962.82 point (5.82%) to 15,587.79, the Dow Jones Industrial Average (DJI) fell by 2231.07 points, and the S&P lost 322.44 points.
How did the crypto market show resilience?
Meanwhile, the crypto sector maintained its firm hold over the market despite large-scale global market turbulence. The overall market cap of cryptocurrencies remained at 2.76 trillion dollars, almost half of the funds that Wall Street lost within 48 hours.
Among cryptocurrencies, Bitcoin maintained its steady lead with its price rallying. Amid the global market slowdown, Bitcoin (BTC) jumped to $84639, currently valued at $83472.
BTC’s counterpart, Ethereum (ETH) also maintained its steady wall despite the market crash and is currently priced at $1811, marking a meager 0.4% price fall in 24 hours.
Amid the global stock plunge, the sheer resilience shown by the crypto market is proof that cryptocurrencies can act as a viable alternative finance sector. Taking note of current market turmoil, crypto influencers like CZ of Binance and Michael Saylor of Strategy reiterated the intrinsic value of BTC as a low-risk asset.
