While global markets reeled from Trump’s unexpected tariff announcements, Bitcoin investors got a harsh reality check. The cryptocurrency plunged from $88,000 to $83,000, wiping out a week’s worth of gains faster than you could say “trade war.” Not exactly the stability crypto enthusiasts love to brag about.
The tariff blitz hit hard and wide. Trump slapped 25% levies on Canada and Mexico, while China faced rates between 10% and 50%. India, Europe, Japan – nobody escaped the crosshairs. We’re talking $1.6 trillion in annual trade affected. That’s 5% of U.S. GDP, folks. No small potatoes.
The crypto market didn’t take it well. Ethereum and XRP tumbled 5%. Crypto-related stocks crashed too – Coinbase down 6%, MicroStrategy dropping 7%. The Rose Garden announcement sent shockwaves through the digital asset landscape with $450 million in futures liquidations. Ouch.
Traditional markets weren’t spared either. S&P 500 and Dow Jones took beatings. Treasury yields hit five-month lows. The dollar weakened while gold prices – surprise, surprise – hit record highs. Classic flight to safety stuff.
Bitcoin’s reaction showed it’s still tied to the broader economy, despite what crypto purists claim. When recession fears rise, Bitcoin falls. Simple as that. The synchronized dive with tech stocks like Apple (down 7%) and Amazon (down 6%) tells the real story. Many traders unable to access their funds due to forgotten private keys faced double jeopardy as their assets depreciated rapidly.
Trading partners aren’t taking this lying down. Canada’s already announced retaliatory 25% tariffs on $155 billion of U.S. goods. China’s hinting at countermeasures. South Korea and Vietnam are staring down 25%-46% levies. It’s getting messy out there.
For all the talk about Bitcoin being “digital gold,” it sure acted like a risk asset when the tariff bomb dropped. The total crypto market experienced catastrophic liquidations of over $2.17 billion, affecting hundreds of thousands of traders. The crypto market’s knee-jerk reaction revealed its true colors. Seems like when global trade tensions flare up, Bitcoin’s store-of-value narrative goes right out the window.
