Bitcoin and Other Cryptocurrencies Under Pressure After Trump's Tariffs Jolt Stock Market

The cryptocurrency market faced significant pressure after former President Donald Trump announced sweeping tariffs, sparking fears of a global trade war. Bitcoin's value dropped by 5%, and other cryptocurrencies like Ether and Solana also suffered losses. The stock market responded negatively, with the S&P 500 experiencing its worst day since September 2022. Companies with strong cryptocurrency ties, such as Coinbase and MicroStrategy, saw substantial declines in their stock prices. Market analysts attribute bitcoin's activity to global liquidity indicators rather than crypto fundamentals. With recent adjustments in rate expectations and real yields, bitcoin remains volatile, reacting swiftly to such financial stimuli. Despite the turmoil, crypto markets appeared more resilient compared to equities. The market's reaction seems mixed; while the tariffs introduced additional uncertainty, they also provided a felt sense of direction, potentially enticing institutional investors to capitalize on lower valuations.