Both the crypto money market and the stock exchanges have suffered serious losses. The media called this day as “Black Monday .. This name refers to large market collapses in history, such as the Black Thursday in 2020 and the Black Monday in 1987. So what does this mean? What does history say to us and how long can the markets recover?

The main reason for the collapse was the trade war initiated by the Trump administration on April 2, on the date when it declared it as “salvation day”. The US brought new customs tariffs to dozens of countries.

President Trump’s statements, showing that he had no intention of stepping back, led the markets to a panic on Monday morning, April 7. Experts warn that this situation can trigger a global recession.

The decline in the crypto money market was particularly remarkable. Bitcoin lost about 7.7 %in 24 hours. Large crypto currencies such as Ether, Solana and XRP have lost up to 20 %. BNB fell around 9 %.

Prices were then partially recovered by 3 %to 5 %. The large liquidations in the leveraged positions were remarkable: in 24 hours, a position of approximately $ 600 million was closed.

The US stock exchanges fell by 3 %in the morning, but compensated for their losses towards the end of the day. At the end of the day, the stock markets fell below 1 %.

Nasdaq has experienced the highest fluctuation since 2008. The rumor that tariffs for all countries except China will be postponed for 90 days, but the White House denied these claims.

In other countries, the situation was even more serious. Hong Kong’s Hang Seng index declined by 13 %and has experienced the biggest decline since 1997. Japan’s Nikkei index fell by 7.9 %. The largest decline in Australia with a loss of 4.2 %has been the biggest decline since 2020. The European stock exchanges closed an average of 4.7 %.

Although this decline for Bitcoin was not the largest one -day loss in history, investors were uneasy. After the announcement of COVID-19 pandemia in March 2020, the price of BTC fell by 50 %in one day.

However, the next day he began to recover, at the end of April, he had exceeded his old level. In this recovery, the government’s incentive payments were effective. At that time, 10 %of the Americans invested these payments in the crypto.

Crypto market in the past Mt. Gox experienced jolts such as the closure of 2013 or the collapse of FTX in 2022. But every time he managed to recover.

Michael van de Poppe, founder of Mn Consultancy, said, “The day of salvation, the summit of uncertainty,” he said. According to him, the market will recover when big players understand the conditions. However, it predicts that tariffs can last 6 to 12 months.

For now, the tension between countries continues. However, in the past, Bitcoin has shown resistance in economic crises. This time it is hoped to recover in the same way.