- U.S. President Donald Trump has unveiled new tariffs on imports from the UK and Israel, creating uncertainty in global markets.
- Bitcoin’s price has fallen to approximately $82,000 on Wednesday, declining 3% from its peak for the day of $87,400.
- Gold has reached a record high of $3,152, showing a 10% increase since Trump announced the imposition of tariffs in early March.
The price of Bitcoin has dropped towards $82,000, while Gold has surged past $3,150 following the announcement of new tariffs on Israel and the UK by U.S. President Donald Trump, leading to volatility in global markets.
Global Markets Decline as Trump’s Tariffs Extend Uncertainty
U.S. President Donald Trump has declared extensive tariffs on imports from the UK, Israel, and several other countries, causing fluctuations across international markets.
This initiative, labeled as a “Declaration of Economic Independence,” has triggered contrasting movements in Bitcoin (BTC) and Gold prices.
Bitcoin fell to $82,143, representing a 3% decrease from its highest daily value of $87,400, while gold (XAU) skyrocketed to an all-time high of $3,152 per ounce, marking a 10% rise since Trump’s initial tariff announcement in early March.
On Wednesday, President Trump revealed an extensive list of reciprocal tariffs affecting multiple countries, which include:
- China: 34%
- European Union: 20%
- United Kingdom: 10%
- Israel: 17%
- India: 26%
- Japan: 24%
- South Korea: 25%
- Vietnam: 46%
- Taiwan: 32%
- Thailand: 36%
During his address from the White House, Trump highlighted that the U.S. has been treated unfairly in global trade agreements for decades, according to reports from BBC.
“April 2, 2025, will long be remembered as the day American industry was revitalized, the day America reclaimed its destiny, and the day we began to Make America Wealthy Again,”
– US President Donald Trump announces new tariffs, April 2, 2025
The tariffs, designed to protect domestic industries, have led to a mixed response in the markets, causing U.S. stocks to retreat, commodities like Gold to ascend, and cryptocurrencies to undergo short-term selling pressure.
Bitcoin (BTC) Falls 3% Below $83,000
Following the announcement, Bitcoin experienced significant selling pressure, dipping to a two-week low of $82,143 before finding some stability around $83,187.
This indicates a 7% drop from its recent peak of $88,060 recorded on March 26.
Bitcoin Price Action following Trump’s Tariff Announcement, April 2, 2025 | Source: CoinMarketCap
The decline aligns with investor concerns regarding escalating trade tensions and the broader implications of the tariffs on risk assets. As economic uncertainty increases, traders are favoring traditional safe-haven assets such as Gold over speculative investments.
Gold (XAU/USD) Breaks Through $3,150
In stark contrast to Bitcoin, gold prices surged, surpassing the $3,150 mark for the first time in history. Spot gold was trading at $3,128 per ounce, while U.S. gold futures settled at $3,152.
Gold (XAU) Price Movement after Trump’s Tariff Announcement, April 2, 2025 | Source: Kitco
This marks a notable 10% increase since early March when Trump first indicated the possibility of tariffs.
The rise in gold prices underscores its reputation as a dependable hedge against economic instability and inflationary pressures within the current financial landscape.
Long-term Perspective: Divergent Futures for Bitcoin and Gold Amid Corporate Exposure
The differing responses of Bitcoin and gold prices on Wednesday demonstrate shifting investor sentiment in light of geopolitical and macroeconomic circumstances.
The rally in gold reflects a safety-seeking behavior among investors, aiming for stability in tangible assets given the increasing economic uncertainty.
Historically regarded as “digital gold,” Bitcoin’s recent data indicates a growing correlation with U.S. equities.
As of the latest reports, Bitcoin’s correlation with the Nasdaq 100 index is at 0.74%. This means a 10% drop in the top 100 U.S. tech stocks may correspond to a 7.4% decrease in BTC prices, and vice versa. However, given Trump’s tariff impact, a bearish scenario seems increasingly probable.
Bitcoin (BTC) Price Correlation to Nasdaq 100 Index | April 2, 2025 | Source: TradingView
This trend is linked to the U.S. Government’s increasing engagement with cryptocurrency and the direct exposure of publicly traded companies such as Blackrock and Microstrategy.
This places Bitcoin’s short-term price momentum in jeopardy, particularly if U.S. stocks continue their downward trajectory while affected nations consider retaliatory and diplomatic responses in the coming days.
The upcoming weeks will be pivotal in determining whether Bitcoin can affirm itself as a genuine hedge against economic disturbances or remain closely tied to U.S. tech stocks moving forward.
