Key Points:
- Bitcoin and tech stocks experienced a downturn as investors reconsidered a recent market rally.
- A White House clarification raised the effective China tariff rate to 145% from 125%, pushing the Nasdaq down significantly.
- In contrast, gold prices soared to a new record high as market focus shifted from inflation to geopolitical risks.
On Thursday, as U.S. markets faced renewed turmoil, Bitcoin slumped below $80,000 again following a substantial rise the previous day. This decline mirrored a 5.5% drop in the Nasdaq index, which had a staggering 12% increase the day before as traders evaluated President Donald Trump’s tariff strategy.
Bitcoin price (CoinDesk)
Crypto stocks were not spared: MicroStrategy (MSTR) decreased by 11.2%, while Coinbase (COIN) and Marathon Digital (MARA) dropped by 8.1% and 9.3%, respectively.
The stock market’s decline accelerated after a tweet was shared confirming the rising tariff on China imports. The Executive Order revealed a surge in the “reciprocal” tariff rate from 84% to 125%, which combined with an existing 20% tariff on fentanyl-related imports brings the total to 145%.
In retaliation, China announced it would limit imports of American films, further escalating the trade conflict.
Meanwhile, gold rose sharply, reaching an all-time high of $3,168, while the U.S. dollar index measured against a range of foreign currencies fell below 101, reversing its gains from November and down 9% from January’s peak.
“The macro outlook is anything but secure,” said Kirill Kretov, Senior Expert at CoinPanel. “This is a politically charged environment where headlines can shift sentiment rapidly.”
“A key swing factor now is trade policy,” Kretov added, expressing that the Trump administration’s changing tariff approaches could complicate Federal Reserve decisions and shift the current market narrative.
