Bitcoin and the broader cryptocurrency market came under pressure today after President Donald Trump announced sweeping new tariffs.
This move sent shockwaves through the stock market and caused a sharp sell-off in risk assets.
With the declines, the price of Bitcoin, the world’s largest cryptocurrency, fell below $82,000.
Meanwhile, the stock market also suffered a significant decline. The S&P 500 had its worst day since September 2022, while shares of crypto-related companies like Coinbase and MicroStrategy lost 9% and 7%, respectively.
Trump’s announcement of tariffs starting at 10% and with some countries facing even higher rates has intensified concerns about a potential global trade war. Investors responded by pulling out of riskier assets, contributing to the broader market decline.
Ben Kurland, CEO of cryptocurrency research platform DYOR, said the following on the subject in his statement:
“Bitcoin operates at the intersection of narrative, liquidity and leverage. It currently trades mostly as a high-beta macro asset, tracking real yields, interest rate expectations and dollar strength.”
Kurland also explained that the market reaction was driven by global liquidity signals rather than crypto-specific fundamentals. “When real rates fall and the dollar softens, Bitcoin takes a breather,” Kurland added.
Bitcoin has largely remained in the $80,000 to $90,000 range over the past month, mirroring broader trends in the equity market amid a paucity of crypto-specific catalysts.
Despite the turmoil, some analysts see signs of resilience in the crypto market. David Hernandez, crypto investment expert at 21Shares, said that Bitcoin’s ability to stay above key technical support levels suggests that underlying demand is strong.
“While the customs duty rates were slightly above expectations, the announcement provided much-needed clarity on the scope and scale of the policy,” Hernandez said. “Markets thrive on certainty, and with speculation largely gone, institutional investors may have an opportunity to take advantage of compressed valuations in the coming days.”
*This is not investment advice.
