Bitcoin and other cryptocurrencies faced downward pressure on Thursday after President Donald Trump revealed significant new tariffs, leading to turmoil in the stock market. Bitcoin—the flagship cryptocurrency—was last reported 5% lower at $81,914.63, according to Coin Metrics. Similarly, Ether declined by 6%, while Solana’s associated token dropped 11%.
The financial markets experienced a dramatic downturn, with the S&P 500 posting its worst day since 2020. Notably, shares of cryptocurrency firms Coinbase and MicroStrategy suffered losses of approximately 7% and 10%, respectively. Investors expressed anxiety following Trump’s sweeping announcement of tariffs starting at 10%, with even higher rates for certain countries, fueling fears of an impending global trade war.
“Bitcoin is currently influenced by a mix of narrative, liquidity, and leverage,” explained Ben Kurland, CEO of the crypto research platform DYOR. “At this moment, it is behaving like a high-beta macro asset, responding to real yields, interest rate expectations, and the strength of the dollar.” He added, “When yields pull back and risk assets attract investment, Bitcoin often reacts swiftly. Right now, it’s less about cryptocurrency fundamentals and more about global liquidity and market positioning. A decline in real rates and a weaker dollar typically benefit Bitcoin.”
For much of the past month, Bitcoin has hovered in the $80,000 to $90,000 range, with investors closely watching the equities market in the absence of significant crypto-specific catalysts.
Despite the general market downturn, some analysts believe the cryptocurrency sector has showcased resilience. David Hernandez, a crypto investment specialist at 21Shares, pointed out that Bitcoin holding above critical technical support points indicates a strong demand base.
“While the announced tariff rates were slightly higher than anticipated, the clarity it provided concerning the policy’s scope and scale is essential,” Hernandez noted. “Markets tend to thrive on certainty, and with speculation largely eliminated, institutional investors might see an opportunity to capitalize on the compressed valuations over the coming days.”
