Bitcoin faced significant selling pressure, dropping 7.8% against the Taiwan dollar and hitting a one-month low. This sharp decline occurred alongside a broader global market meltdown triggered by economic tensions following President Donald Trump’s latest tariff decision. The fear of a global trade war gripped financial markets, further exacerbating the market turmoil.

Bitcoin’s slump against the Taiwan dollar mirrored the global risk-off sentiment that had developed over the weekend, with investors rushing to liquidate risk assets. The cryptocurrency had shown initial resilience earlier in the week, but as the broader market began to sink into chaos, Bitcoin followed suit. This downturn led to a sharp depreciation, marking a significant moment in the asset’s performance. As of the morning of April 7, Bitcoin’s price fell to 2.55 million Taiwan dollars, translating into a 1.89% dip in just 48 hours. Against the U.S. dollar, Bitcoin slumped by 7.3%, falling to $76,914, a value not seen in over a month.

The losses in Bitcoin’s market capitalization during April have been staggering, with the total value of Bitcoin shedding roughly $110 billion. This decline mirrored the collapse of traditional markets and underscored Bitcoin’s ongoing correlation with traditional financial assets, especially during periods of high uncertainty. While some investors had hoped that Bitcoin might act as a safe haven asset, it became clear that even cryptocurrencies were not immune to the global panic.

The catalyst for the market bloodbath came from Taiwan, where the country’s largest publicly traded company, Taiwan Semiconductor Manufacturing Company (TSMC), experienced its biggest drop in history. TSMC, which represents over a third of the market capitalization of the Taiwan Stock Exchange, saw its stock price plummet by nearly 10%, losing over 2.4 trillion Taiwan dollars in value in just a few minutes of trading. The sudden market crash spread through the Taiwan Stock Market, which opened after the Qingming Festival with panic selling. The stock index dropped more than 9%, breaking through critical psychological levels. Many major electronics and tech firms, including Foxconn and MediaTek, hit their limit-down prices, contributing to the overall collapse of the market.

The impact of the Taiwan market crash was not limited to Taiwan alone. The fallout was felt across Asia and the Middle East, with major stock indices in Japan, Hong Kong, and China seeing dramatic losses. The Nikkei Index dropped more than 2,500 points, while the Shanghai Composite Index tumbled 6%. In Saudi Arabia, the stock market had its largest single-day drop in five years, falling nearly 7%. In South Korea, the losses exceeded 5%, leading to halts in programmatic trading. The global ripple effect reached U.S. stocks as well, with the NASDAQ falling 6% on Friday.

Surprisingly, even traditional safe-haven assets like gold, typically sought after in times of financial crises, failed to provide the expected protection. Gold saw a drop of 2.65% in April, further signaling that investors were retreating from risk exposure across all sectors.

The sharp declines in both traditional markets and Bitcoin suggest a deeper global financial instability. As Bitcoin and traditional assets move in tandem during periods of geopolitical tension, it highlights the continuing challenge of predicting safe assets during times of global economic uncertainty. While Bitcoin and the broader crypto market are struggling, the situation presents a difficult but possibly lucrative opportunity for those looking to enter the market when prices are low.