Trump's tariffs trigger chaos in the crypto market, further exacerbating bearish sentiment in Bitcoin
Trump announced on Wednesday the imposition of reciprocal tariffs on dozens of countries. Bitcoin briefly surged to $87,400 following the tariff announcement, but then fell sharply to above $82,000, with a decline of up to 3%. Currently, Bitcoin is priced at $83,600, with the intraday decline narrowing to 1.38%.
On Wednesday, a total of $8.6 billion was net withdrawn from cryptocurrency-related ETFs, with net outflows from Bitcoin ETFs reaching as high as $8.7 billion.
Trump's tariff policy has cast a shadow over the entire crypto market, which saw a total value drop of 1.37% within 24 hours, hitting a low of $2.64 trillion. Ethereum briefly fell by 6%, but has since narrowed its decline to 2.8%.
The collective decline in the crypto market indicates that digital currencies are under immense selling pressure, reflecting investors' strong concerns about trade tensions and the broader economic impacts of tariffs.
Bitcoin has previously been dubbed “digital gold,” but in recent months, its price has become increasingly correlated with the U.S. stock market.
The correlation between Bitcoin's price and the Nasdaq index currently stands at 0.74, meaning that for every 10% drop in Nasdaq, Bitcoin's price tends to follow with a 7.4% decline.
As Trump's tariffs continue to impact the market, U.S. stocks are likely to enter a trading phase dominated by bearish sentiment in the short term, making it difficult for Bitcoin to break out of an upward trend.
Trump announced on Wednesday the imposition of reciprocal tariffs on dozens of countries. Bitcoin briefly surged to $87,400 following the tariff announcement, but then fell sharply to above $82,000, with a decline of up to 3%. Currently, Bitcoin is priced at $83,600, with the intraday decline narrowing to 1.38%.
On Wednesday, a total of $8.6 billion was net withdrawn from cryptocurrency-related ETFs, with net outflows from Bitcoin ETFs reaching as high as $8.7 billion.
Trump's tariff policy has cast a shadow over the entire crypto market, which saw a total value drop of 1.37% within 24 hours, hitting a low of $2.64 trillion. Ethereum briefly fell by 6%, but has since narrowed its decline to 2.8%.
The collective decline in the crypto market indicates that digital currencies are under immense selling pressure, reflecting investors' strong concerns about trade tensions and the broader economic impacts of tariffs.
Bitcoin has previously been dubbed “digital gold,” but in recent months, its price has become increasingly correlated with the U.S. stock market.
The correlation between Bitcoin's price and the Nasdaq index currently stands at 0.74, meaning that for every 10% drop in Nasdaq, Bitcoin's price tends to follow with a 7.4% decline.
As Trump's tariffs continue to impact the market, U.S. stocks are likely to enter a trading phase dominated by bearish sentiment in the short term, making it difficult for Bitcoin to break out of an upward trend.
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