2025-04-10T17:30:07.000Z

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The cryptocurrency market is currently experiencing significant volatility, triggered primarily by the recent introduction of tariffs by President Donald Trump. This situation has led many analysts and investors to draw parallels with the infamous market crash witnessed during the COVID-19 pandemic in March 2020.

Bitcoin, which stands as the largest cryptocurrency by market capitalization, has seen a staggering decline of up to 16% following the announcement of these tariffs, trading at five-month lows below $75,000. Ethereum, the second-largest cryptocurrency, has faced an even steeper drop, plummeting as much as 28% to nearly $1,400, a level not observed since March 2023.

As the market continues to reel from these losses, the stark comparisons to the COVID-19 crash have emerged. Early reports indicated that Bitcoins value had fallen approximately 8% from over $81,000 to around $74,500 in just a day, prompting discussions among investors about the potential for a repeat of the traumatic events of March 2020.

Renowned market analyst Jonathan Carter expressed his concerns on social media platform X, stating, Black Swan in crypto today. This scenario is similar to the Covid dump with almost a 1:1 match. Meanwhile, another prominent analyst known as Tyler Durden countered this perspective, remarking that the current market sentiment still does not reflect the full intensity of the March COVID-19 crash, asserting that it still not even 10% of the feeling of March COVID crash.

The COVID-19 pandemic fundamentally altered the global landscape, affecting every sector, including financial markets and cryptocurrencies. When President Trump declared a national emergency due to the pandemic on March 13, 2020, the cryptocurrency market capitalization experienced a catastrophic drop of nearly 40%, falling from approximately $224 billion to $135 billion marking one of its worst intraday crashes on record.

During that chaotic period, Bitcoin suffered its most severe intraday correction, losing over 35% of its value as it plummeted from around $7,000 to below $4,500. Ethereums plight was even worse, witnessing a staggering 43% drop on that fateful day, signifying its second-worst correction ever recorded.

As the current market struggles, investors and analysts alike are left pondering the comparisons and implications of these two significant downturns. Will the cryptocurrency sector be able to recover from this tariff-induced turmoil, or are we heading into a deeper market correction akin to what transpired during the pandemic? Only time will tell.