tldr; On April 2, the cryptocurrency market experienced a sharp decline following President Trump’s Liberation Day reciprocal tariff announcement. Bitcoin briefly surged above $87,000 before dropping to $83,662, while the total crypto market capitalization fell from $2.77 trillion to $2.61 trillion within hours, erasing $160 billion. A slight recovery brought the loss to $140 billion by April 3. The event highlights the market’s vulnerability to external shocks and its increasing correlation with stocks, contrasting with gold’s performance as a safe haven.