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Bitcoin price drops below $80K as stocks face 1987 Black Monday rerun

Bitcoin turned up volatility into the April 6 weekly close as fears of a stock market crash contrasted with bullish BTC price targets. 

CNBC’s Cramer: 1987 crash not “off the table yet”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping below $80,000 on the day, down 3% since the start of the week.

The days in between had seen several bouts of flash volatility as US trade tariffs and recession concerns stoked major losses across risk assets.

US stocks in particular recorded significant losses, with both the S&P 500 and Nasdaq Composite Index finishing the April 4 trading session down nearly 6%.

“Trump's tariff announcement this week has wiped out $8.2 TRILLION in stock market value — more than was lost during the worst week of the 2008 financial crisis,” author and financial commentator Holger Zchaepitz summarized in a response on X.

The poor close caused some to wonder how the coming week would open, with comparisons to the “Black Monday” 1987 crash surfacing across social media.

“It's tough to build a new, weaker, world order on the fly,” Jim Cramer, host of CNBC’s “Mad Money” segment, argued on X over the weekend.

“Frantically trying to do it but don't see anything yet that takes the October 87 scenario off the table yet. Those who bottom-fished are sleeping with the fishes ...so far.”

Cramer had previously warned over a 1987 scenario playing out live on air, but subsequently reasoned that control mechanisms in the form of market circuit breakers “could slow things down.”

Bitcoin circles also saw some daring predictions of how markets would behave in the short term. Max Keiser, the popular yet controversial Bitcoin supporter, even called for BTC/USD hitting a giant $220,000 before the end of the month.

“A 1987 style mega crash will push Bitcoin to $220,000 this month as trillions in wealth seek the ultimate safe haven: Bitcoin,” he wrote in part of an X response to Cramer. 

Bitcoin resists copycat BTC price dive

Among traders, the diverging sentiment over Bitcoin and stocks was increasingly apparent.

“$BTC Volatility going lower and lower while the $VIX (Volatility Index) on Stocks has closed at the highest level since the Covid Crash in 2020,” popular trader Daan Crypto Trades acknowledged in his latest analysis.

“This is pretty unheard off and due to this compression I'm pretty confident a large move for crypto is going to occur next week as well. Whether it's up or down comes down to whether stocks can find a bottom early in the week or not I'm assuming.”

Fellow trader Cas Abbe suggested that recent $76,000 lows on BTC/USD may end up as a classic fake breakdown.

“This looks no different than the post-ETF dump and August 2024 crash,” he told X followers. 

“I'm waiting for a weekly reclaim of $92,000 to confirm the uptrend.”

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