On Thursday, Bitcoin’s value dropped to $79,500, wiping out a significant portion of the previous day’s gains after reaching $83,300, as excitement over U.S. President Donald Trump’s tariff pause diminished.
Over the last 24 hours, BTC has decreased by approximately 3.1%.
Yesterday, the president reduced tariffs on most countries to 10%, igniting a wild rally in both the cryptocurrency and wider markets, as investors considered how the U.S. sidestepped a trade war with 180 nations in Trump’s “Liberation Day” declaration.
In contrast, tariffs on Chinese imports were raised, resulting in a cumulative rate of 125%, and the tension with one of America’s major trading partners showed no signs of abating on Thursday.
According to crypto data provider CoinGecko, the overall cryptocurrency market value fell by 4.7%, decreasing from $2.72 trillion to $2.61 trillion over the previous day. Both Ethereum and Solana experienced declines exceeding 7% in the past 24 hours, approaching $1,500 and $110, respectively.
The U.S. Bureau of Labor Statistics announced on Thursday that inflation had decreased to 2.4% for the year ending in March. Despite Trump’s universal tariffs taking effect less than a week ago, the Federal Reserve has been keeping an eye on inflation data for indications of potential persistence.
Concerns have been raised by investors that Trump’s tariffs could lead to inflation as companies face rising input costs. Additionally, some economists worry that Trump’s tariffs might stifle economic growth and trigger a slowdown.
While Trump’s decision to postpone most tariffs provided a much-needed break for markets, uncertainty still prevails regarding the eventual impact of the White House’s unpredictable approach, according to Strahinja Savic, head of data and analytics at Canadian crypto-focused investment bank FRNT Financial, in a statement to Decrypt.
“The environment for all assets is quite perplexing,” he remarked.
Despite Bitcoin’s recent decline, it remains above its low of $74,700 recorded on Monday when markets were anxious about tariffs.
“Overall, Bitcoin has shown resilience,” Savic noted. “Given the turbulent circumstances of the past few days, Bitcoin’s reputation as a ‘safe haven’ may be resonating stronger than ever with investors.”
On Thursday, Bitcoin outperformed the S&P 500 and the technology-heavy Nasdaq, both of which declined by 4.5%. Conversely, gold, the traditional safe haven asset, rose by 3.7% to $3,194 per ounce, achieving a new record.
Edited by James Rubin
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