U.S. Stock Market Loses $3.25 Trillion, Exceeding Entire Crypto Market Capitalization

Highlights:

• U.S. stock market lost over $3.25 trillion, marking its worst loss since March 2020.
• Bitcoin remained steady amid market turmoil, down only 0.16% over the past week.
• Crypto capital inflows surged 350% in two weeks, indicating renewed investor interest in risk assets.

The U.S. stock market lost over $3.25 trillion in value on April 4. This drop was bigger than the total value of all cryptocurrencies, which was $2.68 trillion at that time. The fall came after strong investor worries about new tariffs announced by Donald Trump earlier in the week. It was the worst one-day market loss since March 2020.

The Nasdaq 100 dropped by 6% in a single day, pushing it into bear market territory, according to The Kobeissi Letter. The platform noted that U.S. stocks have now lost around $11 trillion in value since February 19. It also warned that the chance of a recession has risen to over 60%. Among the Magnificent-7 stocks, Tesla (TSLA) led the losses with a 10.42% drop. Nvidia (NVDA) fell 7.36%, and Apple (AAPL) dropped 7.29%, according to TradingView data.

It's official:

The Nasdaq 100 is in a bear market following a -6% drop today, the largest drop since March 2020.

US stocks have now erased a massive -$11 TRILLION since February 19th with recession odds ABOVE 60%.

What does it all mean? Let us explain.

(a thread) pic.twitter.com/NMOqfmKyyP

— The Kobeissi Letter (@KobeissiLetter) April 4, 2025

The new policy sets a base tariff of 10% on imports, but goods that meet USMCA rules are exempt. Some countries could face tariffs as high as 49%. The 10% tariff will start on April 5, while the reciprocal tariffs will begin on April 9. On Friday, Fed Chair Jerome Powell said the tariffs may increase inflation and slow down U.S. economic growth.

Bitcoin Holds Strong Amid Market Turmoil

Unlike the sharp drop in the stock market, Bitcoin has stayed steady. Despite growing fears of a recession and wider economic troubles, Bitcoin was down only 0.16% over the past week. At the time of writing, it was trading at $83,620, according to CoinMarketCap.

In an April 4 tweet, Bloomberg analyst James Seyffart expressed surprise that Bitcoin has remained above $80,000 despite market turbulence.

Genuinely shocked a bit by Bitcoin's resilience. Would not have guessed it would hold above $80k in this type of broader market selloff of risk assets…

Hell — even Gold is down? pic.twitter.com/SKRkZF8hCb

— James Seyffart (@JSeyff) April 4, 2025

Despite widespread concerns, BitMEX co-founder Arthur Hayes voiced his support for tariffs. He said global imbalances could be resolved through money printing, which could, in turn, support Bitcoin. He asserted that while tariffs may cause short-term disruption, they could ultimately benefit Bitcoin in the long term.

Arthur Hayes predicts that these tariffs could weaken the U.S. dollar. International investors may sell off U.S. assets and repatriate funds as a result. He also notes that significant tariffs on China could lead to a depreciation of the Chinese yuan. This could prompt Chinese investors to seek alternative assets, such as Bitcoin.

Some of y'all are running scurred, but I LOVE TARIFFS, some chart porn to understand why.

Global imbalances will be corrected, and the pain papered over with printed money, which is good for $BTC. pic.twitter.com/jc5eZ2VIEa

— Arthur Hayes (@CryptoHayes) April 4, 2025

Surge in Crypto Capital Inflows Reflects Renewed Investor Interest

An X post by analyst Ali Martinez on April 5 revealed that capital inflows in the crypto market have surged by 350% in just two weeks. The data showed inflows rising from $1.82 billion to $8.20 billion, indicating renewed investor interest in risk assets. The data also shows that investors are shifting funds into stablecoins instead of stocks.

Capital inflows into the crypto market have surged 350% in just two weeks, jumping from $1.82 billion to $8.20 billion! pic.twitter.com/Nv1C8cczwm

— Ali (@ali_charts) April 4, 2025