Jim Cramer has issued a stark warning of a potential market crash reminiscent of 1987’s Black Monday, citing President Donald Trump’s sweeping tariffs and escalating global tensions. The CNBC host described the market conditions as aligning with “the 1987 scenario,” referencing the single-day 22.6% plunge of the Dow Jones Industrial Average.
“If the president doesn’t try to reach out and reward these countries and companies that play by the rules… we will not have to wait too long to know. We will know it by Monday,” Cramer said.
His comments came after Trump announced a blanket 10% tariff on imports, set to rise as high as 34% for certain nations, including China and India, beginning April 9.
Market turmoil followed immediately. The Dow dropped 2,231 points on Friday after falling 1,679 points the day prior. The S&P 500 lost nearly 6%, and the Nasdaq dropped 5.8%, making it the worst two-day slide since the COVID-19 crash in early 2020.
Crypto Stocks and Bitcoin Feel the Pressure
Cryptocurrency markets, while not immune, showed measured resilience compared to equities. On April 3, crypto stocks declined across the board. Coinbase fell 4%, MicroStrategy dropped 3%, and mining companies MARA Holdings, Riot Platforms, and Bitfarms saw declines of 4%, 5%, and 6%, respectively.
Bitcoin dropped 2.3%, briefly slipping to $81,000 before recovering above the $82,000 support level. Ether fell by 3.3%. The movement reflected a broader shift away from high-risk assets amid rising uncertainty.
analysts pointed to the crypto sector’s decentralized and globally accessible structure as a factor behind its relative stability. Marco Iachini of Vanda Research suggested crypto ETFs may attract retail inflows, though he noted that “the size of the flow could reduce as things get a bit shaky.”
Despite these declines, the sector held relatively firm. Bitcoin remained in the $82K–$85K range it occupied for much of March. Analysts noted this as evidence that much of the tariff impact had already been priced in.
However, based on Cramer’s warning of a Monday crash, there is growing concern that the resilience shown by the crypto sector may not hold. As broader market stress intensifies, the industry is now bracing for impact.
Tariffs Trigger Black Monday Parallels and Fed Caution
Cramer drew a sharp line between short-term volatility and systemic risk. “We could be in for the rips of a quick bear market… or it might be the Big Kahuna—the one in October 1987,” he said. He also criticized the administration’s lack of planning, calling the downturn a “man-made obliteration.”
Federal Reserve Chair Jerome Powell, speaking April 4, confirmed the Fed would not rush to adjust interest rates until the impact of tariffs on inflation and growth becomes clearer. Odds of a June rate cut rose to 67%, according to the CME Watch Tool.
As global markets prepare for countermeasures from key U.S. trading partners, including China and Mexico, investor anxiety remains elevated. While some experts see potential for strategic investment amid the volatility, Cramer’s warning of a 1987-style crash continues to shape expectations going into the week.
