The U.S. stock markets have suffered a remarkable $11 trillion decline since February 19, with losses intensifying on April 4 amid rising apprehensions regarding President Donald Trump’s expansive tariff policies.
On April 4 alone, the market fell by $3.25 trillion, a figure that surpasses the total valuation of the global cryptocurrency market, which was approximately $2.68 trillion at that point.
In the technology sector, the leading companies known as the “Magnificent 7” saw significant declines, with Tesla dropping 10.42%. Other major players like Nvidia and Apple suffered losses of 7.36% and 7.29%, respectively, as reported by TradingView.
Nasdaq 100 Drops 6%, Enters Bear Market as Sell-Off Worsens
This comprehensive sell-off pushed the Nasdaq 100 down by 6%, officially marking its entry into bear market territory.
The Kobeissi Letter, a financial insights platform, referred to April 4 as the most detrimental day for U.S. equities since March 2020.
“The U.S. stock market has now experienced a staggering $11 trillion loss since February 19,” the Kobeissi Letter stated in an April 4 update on X, indicating that the likelihood of a recession now exceeds 60%.
Furthermore, the platform characterized Trump’s April 2 tariff announcement as “historic” and cautioned that if such policies continue, a recession may be inevitable.
President Trump's reciprocal tariffs on Wednesday were historic. The effective US tariff rate is now above 25% for the first time since ~1900. We are ABOVE levels seen in the Smoot-Hawley Tariff Act of the 1930s. If these tariffs persist, a recession is impossible to avoid. pic.twitter.com/eqr0Qik5ZH
— The Kobeissi Letter (@KobeissiLetter) April 4, 2025
Trump’s executive order establishes a 10% baseline tariff on all imported goods while introducing reciprocal tariffs meant to address trade imbalances.
The president stated that the initiative aims to counterbalance the disproportionately high tariffs placed on U.S. exports by foreign nations.
While conventional markets are faltering, Bitcoin has displayed remarkable stability. As of the most recent data, BTC was trading around $83,749, reflecting a minor decline of just 0.16% over the past week, according to CoinMarketCap.
Traders have begun to view Bitcoin’s steadiness as a potential safeguard against broader economic uncertainty.
“Bitcoin doesn’t seem affected at all by tariff disputes and the plummeting markets,” noted technical analyst Urkel. Even some longtime Bitcoin critics are starting to recognize its resilience.
“I’ve been skeptical about Bitcoin in the past,” acknowledged stock market commentator Dividend Hero, “but witnessing it maintain its ground while stocks are in free fall is quite intriguing to me.”
Everyone is talking about $BTC strength in the face of a 2-day, 10%+ stock sell-off, even as gold falls. But this has nothing to do with stocks. Bitcoin is NOT, & never has been, a market hedge. It is a gov't/bank hedge. This selloff is due to a loss of trust in global gov't. pic.twitter.com/hi9g4vIseh
— Jeff Dorman (@jdorman81) April 5, 2025
Market Manipulation Allegations Surface: Pompliano Weighs In
In a recent commentary, Bitcoin advocate Anthony Pompliano suggested that the Trump administration may be manipulating market conditions to compel Federal Reserve Chair Jerome Powell into lowering interest rates.
He posited that President Trump and Treasury Secretary Scott Bessent might be orchestrating a decline in asset prices as a strategy to encourage the Fed to cut interest rates.
Pompliano, who leads Professional Capital Management and hosts The Pomp Podcast, emphasized that reducing interest rates is vital to mitigate the need to refinance $7 trillion in impending U.S. debt obligations.
“Trump and his team are intentionally crashing the market,” he asserted. “Is this a master plan or are we witnessing uncontrolled destruction?”
This perspective arises as Powell has recently resisted calls to lower rates, despite Trump’s frequent urgings for reduced borrowing costs.
In January, the Federal Reserve maintained rates within a range of 4.25% to 4.5%, adhering to a cautious approach in light of inflation concerns.
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