Today, April 7, has been referred to by industry participants as \"crypto Black Monday,\" a term derived from the substantial volatility experienced over the weekend. Over the span of the past two days, more than $1 billion in both long and short positions were eliminated due to the heightened market fluctuations.

According to data from Coinglass, on Saturday, April 5, approximately $116.59 million worth of positions were liquidated. This figure included $33.02 million in short positions and $83.57 million in long positions. The following day, the scale of liquidations surged further, reaching over $850 million. Similar to the previous day, the majority of these liquidations were long positions, amounting to $743.115 million, compared to $107.881 million in short positions.

These liquidations have sparked widespread pessimism throughout the cryptocurrency market. As per CoinGecko data, the total market capitalization of cryptocurrencies has decreased by more than 10%, currently standing at $2.5 trillion.

Within the top ten cryptocurrencies, XRP is experiencing the most severe decline, with its price falling by over 15.4% to trade at $1.7 at the time of this report. Similarly, Ethereum's price dropped by 14.3%, trading at $1,480 at the time of writing.

Analysts on platforms like Twitter are discussing the possibility of a historic crash akin to \"Black Monday.\"

\"Black Monday\" refers to a major and abrupt stock market crash on October 19, 1987. On that day, major stock indices around the world plummeted, with the Dow Jones Industrial Average (DJIA) in the U.S. declining by 22.6%. This marked the largest single-day percentage drop in history.

In light of this, panic spread as trading volumes overwhelmed the markets. The absence of mechanisms to halt trading during extreme volatility allowed the market to continue its downward spiral without interruption.

Following the extensive liquidations, Google Trends data indicates that global searches for \"Black Monday\" reached peak levels.

The well-known market commentary attributes the current downturn to uncertainties regarding proposed tariffs, labeling \"Black Monday\" as the prevailing sentiment. Analysts at The Kobeissi Letter predict \"short-term capitulation\" this week.

This perspective aligns with the AAII Sentiment Survey, which reported an unusually high 61.9% bearish outlook. Notably, this figure is double the historical average of 31.0%.

Analyst Duo Nine supports this viewpoint, warning that proposed tariffs could disrupt global supply chains, reduce productivity, and potentially lead to a prolonged bear market for cryptocurrencies. He suggests this bear market could last between one to two years if a recession occurs.

While concerns over tariffs dominate, some contrarian investors view the extreme pessimism as a buying opportunity. This belief is based on the assumption that when such grim forecasts become widespread, the market bottom may be nearing. Such a strategy would capitalize on moments of peak fear.

Not all agree with the doomsday narrative. Ryan Wollner, founder of Pearpop, cautioned against exaggerated interpretations on social media platforms. He also dismissed comparisons to the 1987 crash.

Wollner suggested that astute traders could benefit by selling now and purchasing at lower prices later. He emphasized that unlike past recessions triggered by fraudulent activities, this current downturn represents a temporary shift, with funds likely moving towards U.S. companies and nations favored by tariffs.

Data from BeInCrypto shows that Bitcoin has fallen by nearly 8% in the last 24 hours, trading at $77,030 at the time of publication.

As markets prepare for potential disruptions, opinions vary between an impending crisis and opportunistic recovery.

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