Bitcoin drops due to Trump’s tariffs causing global stock market decline
The global financial markets experienced significant volatility over the weekend as the price of Bitcoin fell by approximately 7 per cent in response to US President Donald Trump’s tariff announcements. This drop resulted in the leading cryptocurrency plummeting to around $77,500 in a span of 24 hours after consistently trading above $80,000 throughout the year.
Accompanying Bitcoin’s decline, other major cryptocurrencies such as Ethereum and Solana also experienced substantial decreases, with their values dropping by approximately 12 per cent within the same 24-hour trading period. The overall cryptocurrency market saw a decrease of around 7 per cent during this time frame, with Bitcoin’s value declining by about 28 per cent since reaching an all-time high of approximately $110,000 in January.
The initial surge in the cryptocurrency market, which led to a surge of over half a trillion dollars in market value, has been attributed to the unveiling of a new strategic reserve by President Trump. However, market conditions began to shift negatively as the president reaffirmed his commitment to imposing restrictive tariffs, leading to a downward trend in cryptocurrency prices.
The decrease in cryptocurrency prices prompted a series of liquidations, resulting in approximately $250 million in long liquidations for Bitcoin within the last day alone. Investors appear to be bracing for additional fluctuations in the global market following President Trump’s implementation of tariffs, which has sparked concerns about a potential recession, particularly within the United States.
As a result of the tariff announcements, various stock market indexes also experienced declines, with the Dow Jones Industrial Average futures dropping by over 4 per cent, S&P 500 futures falling by nearly 5 per cent, and Nasdaq 100 futures plummeting by 5.3 per cent. Analysts at JPMorgan have raised the risk of a recession to 60 per cent due to the tariffs imposed by President Trump, as well as retaliatory measures taken by China.
The recent fall in global stock markets has been estimated to have wiped out approximately $7 trillion in value since the implementation of the tariffs on April 2nd. In response to these market conditions, crypto analysts predict that the price of Bitcoin will continue to reflect global stock market trends amidst ongoing economic uncertainty, potentially overshadowing any positive developments resulting from the Trump administration’s regulatory leniency.
