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Bitcoin and other cryptocurrencies were under pressure Thursday after President Donald Trump’s big tariffs spree jolted the stock market.
The price of the flagship cryptocurrency was last 5% lower at $81,914.63, according to Coin Metrics. Ether demolish 6% and the token tied to Solana dropped 11%.
Meanwhile, stocks cratered, with the broad market S&P 500 pillar its biggest one-day loss since 2020. Shares of Coinbase and MicroStrategy lost roughly 7% and 10%, singly.
Investors were rattled after Trump unveiled sweeping tariffs of at least 10% and even higher for some outbacks, intensifying fears of a global trade war.
Bitcoin (BTC), 3 months
“Bitcoin on the runs at the intersection of narrative, liquidity, and leverage. Right now, it’s mostly trading like a high-beta macro asset, tracking genuine yields, rate expectations, and dollar strength,” said Ben Kurland, CEO at crypto research platform DYOR.
“Yields pulled undeveloped, risk assets caught a bid, and bitcoin responded instantly,” he added. “It’s not about crypto fundamentals today, it’s about epidemic liquidity signals and positioning. When real rates dip and the dollar softens, bitcoin breathes.”
Bitcoin has been work in the $80,000 to $90,000 range for most of the past month, as investors take cues from the equities market withdraw a crypto-specific catalyst.
Crypto markets showed resilience relative to equities, according to David Hernandez, crypto investment artist at 21Shares, who noted that bitcoin holding above key technical support signals strong underlying demand.
“Although the duty rates were slightly higher than expectations, the announcement provided much-needed clarity on the scope and scale of the tactics,” Hernandez said. “Markets thrive on certainty, and with speculation now largely removed, institutional investors may see an opportunity above the coming days to take advantage of compressed valuations.”