4 Things That Could Further Impact Crypto Markets in The Week Ahead
A tumultuous week lies ahead, with global stock and commodity markets already reeling from Donald Trump’s trade war.
Crypto market sentiment is deep in bearish territory as the selloff accelerates, and this could well continue over the coming week as March inflation data is released in the United States.
Additionally, President Trump’s tariff policies are scheduled to take effect Wednesday, with China’s retaliatory measures following on Thursday.
Responses to Trump’s reciprocal tariffs are likely to begin on Monday as nations across the globe figure out how to offset the impact. Fear is growing among Investors that Trump’s new tariffs would slow down US and global economic growth, and increase inflation.
The minutes of Federal Reserve’s March Federal Open Market Committee meeting will be released on Wednesday, giving possible insights into the central bank’s next move.
Thursday’s Consumer Price Index (CPI) report will also be closely eyed as investors gauge price pressures following the tariff announcements. Economists expect March inflation to remain unchanged after February’s steeper-than-expected decrease, but recession fears have been reignited.
Thursday will also see data on initial jobless claims released, shedding light on labor markets in the United States.
Friday will see the Producer Price Index (PPI) report released, highlighting wholesale price trends that can ultimately affect consumer prices. Preliminary consumer sentiment data is also released Friday, and this includes consumer price expectations, an indicator of future inflation trends.
If global tariff tensions escalate or economic data disappoints, the selling pressure will likely continue throughout the week.
It is also a big week for bank first-quarter earnings, with JPMorgan Chase, Wells Fargo, Bank of New York Mellon, Morgan Stanley, and BlackRock slated to report quarterly results.
Crypto markets have seen one of the largest daily declines of the year, with a 9% slump in total capitalization. Around $250 billion has left the space in less than 24 hours, resulting in a fall to $2.5 trillion in total cap.
Bitcoin fell 8% to just over $74,000 in its largest dump since March 11. Momentum remains bearish, and further losses are more likely than gains in the current economic outlook.
Ethereum is at bear market lows, having fallen a whopping 18% to $1,450, its lowest level since October 2023.
The altcoins are a sea of red this morning, with double-digit losses for XRP, Solana, Dogecoin, Cardano, Chainlink, and Stellar as the crypto exodus continues.
Panic Hits Crypto, Stocks, and Commodities at Levels Not Seen Since 2020 Covid Crash
Crypto markets have dumped 10% in less than 24 hours as more than $240 billion exited the space.
Meanwhile, stock market futures are down 15% in three days “like we are in a depression,” commented the Kobeissi letter on April 7.
Oil prices are trading below $60, “like demand has collapsed,” gold prices are down $180 in two sessions, “like there’s a flight to cash,” and bond prices are skyrocketing, “like the economy has halted,” it added.
“Sentiment is down to March 2020 levels like we are entering a lockdown. This is a mass flight to the sidelines.”
Almost five years ago, in March 2020, crypto markets dumped almost 50% in around a week as the world went into lockdown.
Fast-forward to 2025, and around half a trillion dollars—more than double the entire crypto market cap in March 2020—has left the space over the past month … and almost half of that has exited over the past 24 hours.
“Bearish sentiment is arguably near its highest levels in history,” Kobeissi stated before adding that “Black Monday” has become the consensus view amid tariff uncertainty.
“It would take a lot to not see at least short-term capitulation this week.”
It added that today’s drop in US stock market futures puts S&P 500 futures down by 22% and in bear market territory. The US stock market has now erased an average of $400 billion per trading day for 32 straight days, it revealed.
On Friday, investors were hopeful of signs of a trade deal this weekend. However, it was complete silence that occurred, “and markets hated it.” When Trump was questioned about the massive sell-off , he said, “Sometimes you have to take medicine.”
Meanwhile, stock markets across Asia have opened with double-digit declines as trading resumed this Monday. Many of them hit “circuit breakers,” which are protection mechanisms to pause trading to prevent capitulation events.
Economist and investor Raoul Pal called it “the delicious smell of peak fear on Sunday and Monday,” adding , “This too shall pass.”
“I hope you are ready to look for spare cash under the sofa to add very, very soon. In a bull market, such opportunities are a gift.”
However, few would agree with his bull market observation after such a violent sell-off, especially crypto investors.
Cramer Warns of ’87-Style Black Monday Crash; But for Bitcoin Bulls This is the Biggest Buy Signal
“Mad Money” host Jim Cramer warned investors late last week that another major market crash could unfold today, Monday, April 7th, comparing current volatility to 1987’s Black Monday plunge.
His warning followed a brutal week where tariff fallout wiped trillions from global stocks.
Cramer pointed to the severe market reaction following President Trump’s tariff implementation, which saw the Dow lose over 2,200 points last week and global equities shed a reported $6.5 trillion Thursday and Friday alone. He cautioned that without government intervention to mitigate the economic damage, a crash mirroring the 1987 meltdown (when markets fell 22% in a day) is a real possibility as US markets reopen.
Cramer outlined three dangerous potential paths: a fast COVID-style bear market, a prolonged dot-com-like tech crash, or the full 1987 scenario, stating, “we’ll know by Monday.”
Related: Robert Kiyosaki: Bitcoin is the Answer as Financial Collapse and US Recession Begin with $6.4T Loss
While Cramer voiced extreme caution, many in the crypto space interpret his bearishness as a potential bottom signal, invoking the “Inverse Cramer Rule.”
This popular sentiment suggests that peak fear expressed by mainstream commentators like Cramer often coincides with market lows and buying opportunities. Crypto influencer Ash Crypto echoed this on X, declaring “The Biggest Bottom Signal is here” in response to Cramer.
This view suggests the market-wide fear Cramer reflects indicates lows may be forming, presenting a potential accumulation window, particularly as Bitcoin tumbled below $77,000K since last week’s dip below $80,000.
Despite the dire warning, Cramer acknowledged recent positive U.S. employment numbers, suggesting a recession isn’t inevitable even if a crash occurs.
Related: Ignore Tariff Noise: Pal & Coutts Point to Liquidity as the Key Bitcoin Driver
However, he stressed the need for immediate policy action from both the U.S. government and Europe to stabilize the situation created by the ongoing tariff tensions.
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First Trust launches first Bitcoin Strategy ETFs
First Trust Advisors has unveiled two new Bitcoin strategy exchange-traded funds, adding to a suite of products that currently hold more than $28 billion in net assets.
In an announcement on April 4, First Trust said it launched the two Bitcoin ( BTC ) strategy ETFs this week.
Specifically, the bitcoin exchange-traded funds are part of the the Floor15 ETF Series of Target Outcome ETFs, with both the FT Vest Bitcoin Strategy Floor15 ETF – April and the FT Vest Bitcoin Strategy & Target Income ETF listed on the NYSE Arca under tickers BFAP and DFII respectively.
“The FT Vest Bitcoin Strategy Floor15 ETF – April represents an innovative step forward in risk-managed cryptocurrency investing. By structuring investments with a defined floor and upside cap, we provide investors with a more controlled way to engage with bitcoin while mitigating downside exposure. This strategy reflects Vest’s commitment to outcome-focused solutions that seek to deliver more certainty and clarity to portfolios,” said Jeff Chang, president of Vest.
Ryan Issakainen, senior vice president and ETF strategist at First Trust, said the launch follows years of demand for bitcoin-linked ETFs. BFAP will allow those seeking to participate in the crypto space a chance to tap into BTC’s upside potential with clarity on downside risk.
As well as BFAP, First Trust believes DFII will gain traction for its potential. The fund, as Issakainen noted in a statement, will allow investors to explore opportunities around Bitcoin’s high volatility. Investors can look to generate income from this by selling call options.
The asset manager offers DFII as an actively managed fund, with 80% of net assets invested in bitcoin and income-generating investments. First Trust’s Target Outcome ETFs have seen a 53% spike in net assets in the past year, with over $28 billion as of the end of February.