The global markets had experienced a serious recession and it was a turbulent start to April as US stocks and cryptocurrencies responded to escalating trade tensions.
The US stock market has threw away a staggering $9.6 trillion worth of President Donald Trump’s second inauguration in January. Notably, that $5 trillion decline has occurred in the last two days, marking the largest two-day loss on record.
The NASDAQ Composite Index is on the verge of checking the bear market, exceeding 20% from its peak at 20,173.89 in December 2024.
JPMorgan Chase also currently estimates the 60% chance of a US economic recession.
This sudden decline is largely due to investors’ concerns after Trump implemented a drastic 10% tariff on all US imports, particularly after it affected high-tech exporters such as China, Taiwan and Vietnam.
In retaliation, China announced a 34% tariff on US goods, further exacerbating market anxiety.
Big Technology was a huge hit
Major technology companies are bearing the brunt of these developments. Apple’s stock fell 12.5% due to increased tariffs on Chinese imports, while Tesla fell 37% amid political controversy and declining sales.
Other tech giants, including Alphabet, Microsoft, Meta, Amazon and Nvidia, have also reported significant losses.
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Crypto Volatility
The crypto market was unimmunized by these radical changes. Bitcoin (BTC) has dropped from 1% to 2% in the last 24 hours, but has since been rebounded and is currently trading at $83,263. The DIP coincided with China’s retaliatory tariffs and the sale of a wider market.
Despite the current recession, some investors remain optimistic about the Bitcoin outlook.
Both short-term and long-term holders have increased their positions in BTC since the beginning of April, signaling continued confidence in Bitcoin’s resilience amid traditional market instability.
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