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Arthur Hayes and Jim Cramer Warn of Further Market Crash: Repeat of 1987 Black Monday?
- Trump’s tariffs announcement on April 2nd 2025 sent traditional and crypto markets into a state of deep uncertainty.
- Bitcoin has now fallen below US$80K, while US$6.6T has been wiped off the value of US markets.
- This includes the Dow dropping by 3,910 points, the worst two-day loss since the Covid pandemic.
- Analysts Arthur Hayes and Jim Cramer warn of a potential ‘Black Monday’ crash when stocks open on Monday. Fears of a looming recession are also growing.
Global markets have reacted poorly to the news of Trump’s tariffs on Wednesday the 2nd of April 2025.
Analysts Arthur Hayes and Jim Cramer have mentioned possible fears of a ‘Black Monday’ styled event after a dismal performance by the stock market in the days following the tariffs announcement.
On Thursday the 3rd of April, the S&P 500 dropped by 4.8%, followed by another 6% drop on Friday. Meanwhile, the Dow Jones plunged by 2,231 points on Friday alone which is the worst drop since the Covid pandemic. The Nasdaq has also plunged 12% in the two days following the tariffs announcement.
In parallel, Bitcoin, which had been holding strong above US$80K(AUS$133.8K) over the weekend, has now broken below this mark.
What happened on Black Monday of 1987?
In 1987 three consecutive bad days on the stock market were followed by a weekend break. When Monday arrived, everyone essentially sold. This move was driven by fear and may have been accelerated by portfolio insurance hedging.
In terms of price action due to tariff measures, similar comparisons are being drawn:
Related: Polymarket, JPMorgan See Increased Odds for Recession Following Trump’s Tariff Play
What the Analysts are Saying
Arthur Hayes has warned of a Black Monday-style crash which could unfold as SPX futures open in Asia, while Jim Cramer has also predicted that a Black Monday-type event could unfold.
However, no analyst holds a crystal ball and Jim Cramer is often seen as a reverse indicator amongst the crypto community on X, given the inverse of his predictions is often touted as more accurate than his actual predictions.
Hayes’ predictions are perhaps interpreted more seriously by the crypto community. Hayes also seems to be taking a very cautious approach to the Monday opening.
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Further Context
With China announcing retaliatory measures in response to Trump’s harsh tariff announcements, fear is ripe within the markets as what looks to be a trade war is unfolding.
At the same time protests have erupted around the US in response to Trump’s recent actions, which may in part be due to his decisions regarding tariffs.
Ultimately, markets are in a great state of uncertainty as the world looks to the US to provide stability, in what has been a series of unorthodox measures taken by the US in recent months.
The direction of the market depends on what Trump does next.
Jim Cramer, TV Personality and Market Analyst. Related: House Financial Services Committee Approves Stablecoin Regulation Bill
Author
Matthew Sell
Matthew is an avid writer with a wealth of experience in the blockchain and FinTech industries. Matthew has also honed his writing skills through his tertiary studies in creative writing at the University of Oxford.
