The world’s leading cryptocurrency stumbled Thursday morning as a fresh wave of global trade tensions sent shockwaves through financial markets. Bitcoin dropped as much as 4.5%, trading near $81,770 by 10:06 a.m. in New York, after former President Donald Trump unveiled a sweeping new tariff regime targeting U.S. trading partners across the globe.
Trump’s announcement—calling for a baseline 10% tariff on all exports to the U.S. and sharply higher duties on countries with the largest trade imbalances—sparked a global market sell-off. China faces a steep 34% tariff, the European Union 20%, and Japan 24%. The move, which reignites fears of a trade war revival, pummeled risk assets, with cryptocurrencies following suit.
Ethereum (ETH) and XRP also slid in early trading, while Solana (SOL) bore the brunt with a steep 10% plunge.
“Cryptocurrencies have historically struggled in environments of heightened uncertainty,” said John Wu, President of Ava Labs. “Announcements like elevated tariffs or high interest rates spook investors, and Bitcoin’s reaction fits that pattern.”
Initially resilient, digital assets began to dip as Asian markets opened and losses deepened as U.S. equity trading kicked off. Wall Street was not spared either—U.S. stocks sank alongside the dollar amid fears that the trade crackdown could slow economic growth.
Zaheer Ebtikar, founder of crypto fund Split Capital, noted the sector’s increasing correlation with traditional risk assets. “Bitcoin’s not behaving like digital gold right now—it’s moving in lockstep with equities,” he said. “That decoupling from gold, which hit an all-time high, shows Bitcoin is still very much viewed as a speculative asset in moments like these.”
While gold briefly touched a record high before reversing, Bitcoin struggled to hold above its key $80,000 support level. Analysts say this could be a crucial threshold.
“Bitcoin is at a crossroads,” said Rachael Lucas, crypto analyst at BTC Markets. “Its next major move depends on how traders interpret this geopolitical shift—will they view it as a risk asset or a safe haven?”
Crypto-linked stocks also faced the fallout. Shares of Coinbase Global Inc. slumped 7%, Bitcoin-holding firm Strategy dropped 6.7%, and mining giant MARA Holdings Inc. tumbled 8.3%.
With markets on edge and global trade tensions escalating, all eyes now turn to Bitcoin’s next move—and whether it can reassert its status as digital gold or remain tethered to traditional risk sentiment.