After President Donald Trump announced a major tariff policy, the stock market was shaken on Thursday and bitcoin and other encrypted currencies were under pressure. According to Coin Metrics, the price of the flagship encrypted currency bitcoin fell by 5 per cent to US$81,914.63. It fell by 6 per cent, while solana-related coins fell by 11 per cent.
At the same time, the stock market was hit hard, with the S&P500 index recording the largest single-day decline since 2020.CoinbaseEquity prices in MicroStrategy fell by about 7 per cent and 10 per cent, respectively. Investors were disturbed by the widespread tariff levels of at least 10 per cent or higher, as published by Trump, which exacerbated concerns about the global trade war.
“bitcoin moves at the intersection of narrative, liquidity and leverage. Currently, it deals mainly with a high-Beta macro asset, tracking the real rate of return, interest rate expectations and the strength of the United States dollar, as indicated by Ben Kurland, CEO of the encryption research platform DYOR.
“The return on the rate of return, the purchase of the venture capital, and Bitcoin's immediate response. The problem today is not about the fundamentals of encrypted currency, but about global liquidity signals and positioning. Bitcoin will show up when real interest rates fall and the dollar weakens.”
In the past month, bitcoin has been traded in the range of $80,000 to $90,000, as investors refer to stock market movements without a specific encrypted currency catalyst. The encryption market showed resilience relative to the stock market. 21 Shares' encrypted investment expert, David Hernández, noted that bitcoin remained above key technology support, indicating strong potential demand.
“Although the tariff rate is slightly higher than expected, the bulletin provides the necessary clarity on the scope and size of the policy”, Hernández said. “Markets depend on certainty, and with speculation now largely eliminated, institutional investors may see opportunities in the coming days to take advantage of compressed valuations.”