The charts again ugly on Thursday after US markets enjoyed a short, suffocating relief on Wednesday.
Bitcoin (BTC), which rose more than 8% the previous day, fell below $80,000 again on Thursday, at around 4%. The decline in Bitcoin came along with a new plunge in the Nasdaq. This is 5.5% lower, following yesterday’s 12% rally, as traders appreciate President Donald Trump’s next step in his tariff policy.
Crypto stock was also a hit. MicroStrategy (MSTR) fell by 11.2%, while Coinbase (Coin) and Marathon Digital (Mara) fell by 8.1% and 9.3%, respectively.
With the session already falling sharply, the sale of the shares escalated after tweets revolved that White House officials confirmed that China’s total tariff rate is now 145%, rather than 125%, as President Trump said yesterday.
Details of the executive order details the “mutual” tariff rates skyrocketed from 84% to 125% overnight. When combined with the existing 20% tariffs on fentanyl-related products, the total rate reaches 145%.
China said it would cut down on American film imports and strengthen the trade war between the two countries in order to attack Trump’s first tariffs.
Meanwhile, gold has risen 3%, reaching a new all-time high of $3,168. The DXY index, which measures the US dollar against a basket of foreign currency, fell below 101, effectively reversed the entire November rally, falling 9% from its January high.
Political indicted environment
“The macro outlook is not secure,” said Kirill Kretov, senior expert at Coinpanel at Crypto Trading Automation Platform. “It’s a politically charged environment, and headlines have the power to reshape emotions almost instantly.”
“A key swing factor right now is trade policy,” Kretov adds, adding that the Trump administration’s ever-changing tariff policy adds to concerns about inflation. “Escalation on this front will complicate the Fed’s decision-making and potentially derail the current market narrative,” he said.
