#TariffsPause

🔥 **TOUGHER TARIFFS AND MARKET VOLATILITY: CRYPTO'S DECOUPLING PUT TO THE TEST**

President Trump's refusal to extend tariff pauses signals a return to aggressive trade policies, reigniting fears of market turbulence. Recent exemptions on tech imports provided temporary relief, but sustained tariffs could destabilize equities, especially retail and multinational stocks vulnerable to supply chain disruptions . Historically, Trump's tariff announcements triggered sharp sell-offs, with the S&P 500 dropping ~5% in April 2025 amid recession worries .

However, **crypto markets show signs of decoupling from macro fears**. Bitcoin (BTC) remained resilient during equity crashes, even as traditional assets like Treasuries and the dollar faltered . Analysts note BTC's correlation with gold as a "safe haven," driven by geopolitical fragmentation and dollar debasement concerns . While short-term tariff de-escalation rumors lifted both stocks and crypto, BTC held gains longer, suggesting divergent trajectories .

**The takeaway**: Tariffs may spike equity volatility, but crypto's evolving role as an uncorrelated asset could insulate it—if decoupling trends persist. Yet, prolonged trade wars risk systemic economic shocks that might eventually drag even BTC into broader risk-off sentiment. Investors should monitor tariff negotiations and institutional crypto inflows for clarity .