On Monday, April 7, 2025, global markets opened in a bloodbath. The CAC 40 lost more than 6% at the opening, followed by the Frankfurt Stock Exchange, which fell 5.7%, and London, which fell 5%. This is unprecedented since 2020. On Wall Street, futures are down sharply, and circuit breakers could come into play at the opening.
The backdrop: a trade war reignited by the United States, with massive tariffs announced by the Trump administration against China, the European Union and Japan. In return, Beijing and Brussels have promised retaliation. The climate is explosive.
Fundamentals shaken
The scale of the market shock is on a par with its magnitude: brutal and global, it is shaking all the major economies and damaging entire sectors. The fall in industrial, technological and financial values is dizzying, causing a real collapse in confidence. Oil, a symbol of global economic stability, has plummeted to below 60 dollars, signaling a worrying contraction in global demand. Gold, traditionally perceived as a safe haven, is soaring in a climate of uncertainty and volatility.
In Europe, the situation is particularly worrying. The euro zone, already weakened by months of sluggish growth, is seeing its indicators turn red. On Monday, April 7, 2025, disappointing figures, such as the decline in German industrial production, the deterioration of the French trade balance and the Sentix index for the euro zone, illustrate the gravity of the situation. Economists are now pointing to a risk of stagflation—a recession combined with inflation—that has never seemed so imminent.
This Black Monday is reminiscent of historical episodes of stock market panic, such as those of 2008 or even 2020, when global shocks destabilized the financial markets. But this time, the source of the malaise is also geopolitical: the trade war reignited by the United States, with massive tariffs against several major economic powers, is fuelling uncertainty. Fears of a global recession have never been stronger, and experts agree that the next few weeks will be decisive. The general feeling is that the global economic system is being reset by political decisions, with the outcome of this financial chaos still unclear.
And what about cryptos?
Contrary to what some analysts had hoped, the correlation between traditional markets and cryptocurrencies did not withstand the widespread panic. The weekend saw a sharp fall in the main cryptocurrencies, with significant losses:
- Bitcoin lost more than 6% in 24 hours, falling below $75,000.
- Ethereum was not spared, falling 12% to around $1,570 – a level it had not touched for almost four years.
The total capitalization of the crypto market collapsed by more than 8%, reaching barely 2.5 trillion dollars.
This spectacular correction on the crypto market is largely due to the domino effect caused by the panic on the stock markets. Here are the main factors explaining this fall:
Cryptocurrencies perceived as risky assets
Still seen as more volatile investments, cryptocurrencies have become the first victims of massive liquidity withdrawals.
Institutional investors are securing their positions:
In a period of uncertainty, these major players are turning to more traditional assets such as:
- Fiat currencies,
- Raw materials (gold, oil, etc.).
Worldcoin (WLD) and increased uncertainty :
This Tuesday, the project led by Sam Altman plans to release 5 million tokens, the equivalent of nearly 2.97 million euros more in circulation. This “unlock” risks adding downward pressure on an already weakened market.
A tense global context:
Global stock market instability, exacerbated by the protectionist measures of the Trump administration, continues to fuel investor concern. Far from benefiting from the hoped-for decorrelation, cryptos are bearing the full brunt of the shocks of a global economic crisis that is steadily intensifying.
A possible rebound?
Despite the panic, some signals suggest a structural resilience of the crypto sector. The holding of the Paris Blockchain Week from April 8 to 10, 2025 sends a strong message. Figures from the ecosystem such as Richard Teng (Binance), Adam Back (Blockstream) and Eric Turner (Messari) are expected in Paris. The event could rekindle institutional interest and refocus the debate on the technological fundamentals of blockchain projects.
Stablecoin volumes are exploding: proof that many investors are seeking protection without completely leaving the crypto ecosystem. The role of stablecoins as transition assets in turbulent times is confirmed.
Towards a new economic cycle?
This Black Monday is more than just a stock market storm. It illustrates the structural weaknesses of the global economic model, which is too dependent on political decisions and geopolitical tensions. The reaction of cryptos, although negative, also shows a growing maturity: the platforms are holding up, volumes remain high, and players continue to innovate.
More broadly, the current crisis raises the question of the need for alternative, transparent and resilient financial systems. Blockchain and cryptos, despite their volatility, could become an essential part of the economy of the future – provided they weather this storm.
Conclusion
The next few days will be decisive. If the traditional markets sink further, cryptos could once again become a serious alternative for investors seeking autonomy and protection against unstable monetary policies.
The week promises to be eventful, with macroeconomic publications, tensions surrounding Jerome Powell – chairman of the Fed – who is warning about the harmful effects of the tariffs imposed by the Trump administration (rising inflation, slowing growth, rising unemployment), and a highly charged political context.
