Bitcoin has slipped to $82,100, Ethereum to $1,790, and XRP to $2.13, continuing a downward trend alongside U.S. stock futures as investors respond to escalating trade tensions and inflation worries. S&P 500 and Nasdaq-100 futures decreased by approximately 0.7% to 0.8%, while Dow futures dropped by 0.55%. Investor sentiment is under strain ahead of President Donald Trump’s tariff announcement on April 2, which is anticipated to implement reciprocal trade measures affecting at least 25 nations. Barclays projects that auto-related tariffs could alone impact more than $275 billion in annual imports. This comprehensive tariff initiative, part of Trump’s proposed “External Revenue Service,” is expected to generate up to $600 billion in revenue.
The market decline has prompted cryptocurrency investors to shift assets into stablecoins and tokenized real-world assets (RWAs), such as tokenized real estate and fine art. According to IntoTheBlock, these assets are experiencing consistent inflows as safe-haven investments. However, they caution that because these assets operate on-chain, even slight changes in market sentiment can lead to substantial price fluctuations due to their liquidity. RWAs reached an all-time high of over $17 billion in early February and are now approaching $20 billion, as reported by RWA.xyz. Some analysts suggest that if Bitcoin struggles to regain its footing, RWAs could achieve a $50 billion valuation by the end of 2025, thereby capturing a larger share of the $450 trillion global asset market.
Since Trump implemented tariffs on Chinese goods on January 20, Bitcoin has decreased by 19%, with the S&P 500 dropping over 7%. “Risk appetite remains low amid President Trump’s tariff threats and ongoing macroeconomic uncertainty,” stated Iliya Kalchev, an analyst at Nexo. In the meantime, inflation concerns are escalating. The U.S. Commerce Department revealed that the core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s favored measure of inflation, rose by 0.4% in February, marking the largest monthly increase in over a year. Economists had predicted a 0.3% uptick.
The Kobeissi Letter noted that U.S. consumer sentiment has plummeted by 20 points over the past month, landing at a reading of 57, the lowest level recorded outside of a formal recession. “An economic slowdown has undoubtedly commenced,” remarked the publication. Investors are reacting by reallocating away from risk-heavy positions, further fueling the volatility in both traditional and digital markets. The so-called “Magnificent 7” tech stocks have collectively lost over $3 trillion in market capitalization recently.
Bitcoin mining continues to expand as a sector; however, regulatory uncertainties and inflationary pressures present obstacles. At the Mining Disrupt conference in Fort Lauderdale, one miner reiterated Trump’s message: “Never sell your stash.” Despite these challenges, industry participants retain an optimistic outlook, although analysts warn that economic and regulatory conditions will greatly influence the sector’s trajectory.
Juan Pellicer, senior research analyst at IntoTheBlock, indicated that many investors initially expected economic advantages under Trump but are now recalibrating to the rising geopolitical tensions and uncertainties. The impending tariff announcement is anticipated to provide more clarity to markets that are already undergoing significant volatility.
