TLDR
Bill Ackman calls for 90-day halt to Trump’s tariffs to prevent “economic nuclear winter”
Bitcoin tumbled to $77,300, erasing nearly $70 billion in market cap
Ethereum down 14% to $1,555 as crypto markets mirror broader risk asset losses
US stock futures plunged Sunday night with S&P 500 down nearly 6%
Analysts warn Bitcoin could drop to $52,000-$56,000 range by summer
The global financial markets are reeling in response to President Donald Trump’s announcement of sweeping new tariffs, with cryptocurrencies experiencing sharp declines alongside traditional markets. Bitcoin has fallen to $77,300, down 7.6% over 24 hours, while Ethereum has dropped even further, sliding 14% to $1,555.
The market turbulence follows President Trump’s recent announcement that the United States would impose a 25% tariff on all foreign-made automobiles, a 10% “minimum baseline tariff” on imports, and new “reciprocal tariffs” targeting countries with levies on American goods.
“Our country and its taxpayers have been ripped off for more than 50 years,” Trump declared from the White House Rose Garden last week. “But it’s not going to happen anymore.”
Market Reaction
U.S. stock futures tumbled Sunday evening, sparking fears of a disorderly market open on Monday. S&P 500 futures dropped 5.98% by 10 p.m. ET, while Nasdaq 100 futures slid 6.2%. Dow futures were down 5.5%.
The cryptocurrency market, often seen as a barometer for risk appetite, has mirrored these losses. Bitcoin briefly rallied to $87,800 during Trump’s tariff announcement last Thursday before retreating sharply.
According to Tracy Jin, COO of MEXC Exchange, “The market is easily manipulated in its current state. This carries the threat of new disappointments… and this will call into question the status of Bitcoin as a safe haven asset, which may lead to an even sharper outflow of funds from the ETF.”
Jin predicts Bitcoin could drop to the “$52,000–$56,000 range” by summer, with Ethereum potentially facing even steeper declines due to structural challenges beyond the tariff situation.
Ackman’s Warning
Bill Ackman, the hedge fund manager and Trump supporter, has issued a stark warning about the potential consequences of the administration’s trade policy. In a series of posts on X (formerly Twitter), Ackman called for a 90-day pause on the tariffs set to take effect on April 9.
The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust.
President @realDonaldTrump has elevated the tariff issue to the most important geopolitical…
— Bill Ackman (@BillAckman) April 6, 2025
“This is not what we voted for,” Ackman wrote. “Business is a confidence game. The president is losing the confidence of business leaders around the globe.”
Ackman argues that without a pause, the United States could face an “economic nuclear winter” that would crush business confidence, halt investment, and lead to mass layoffs.
While acknowledging the administration’s position that decades of unfair trade practices have disadvantaged the U.S., Ackman warned that the downsides of rushing into a tariff regime were far worse.
“By placing massive and disproportionate tariffs on our friends and our enemies alike… we are in the process of destroying confidence in our country as a trading partner,” he said.
Ackman believes the current situation presents an “opportunity” for Trump to pause the tariffs for 90 days and negotiate. The alternative, he warned, would be devastating: “Business investment will grind to a halt, consumers will close their wallets and pocket books, and we will severely damage our reputation with the rest of the world.”
The investor also expressed concern that the economic impact would be felt most acutely by Trump’s supporters. “The consequences for our country and the millions of our citizens who have supported the president — in particular low-income consumers who are already under a huge amount of economic stress — are going to be severely negative,” he wrote.
Many economists have questioned the administration’s approach to tariffs. The formula being used—trade deficit divided by imports—has been flagged as overly simplistic and likely to backfire.
As markets brace for Monday’s opening bell, investors across all asset classes continue to offload risk. Crypto liquidations have reportedly spiked to $900 million, adding to the sense of panic building in the markets.
For cryptocurrency investors, the current market turbulence raises questions about Bitcoin’s status as a safe haven asset, particularly in times of economic uncertainty and trade tensions.
