Stock Market Euphoria, Bitcoin’s Decline : Markets React to Tariff Suspension
Monday was one of the most prosperous days for the American stock markets in recent times. The Dow Jones surged by over 1,000 points, reaching 42,300 points (+2.61%), while the S&P 500 and Nasdaq both advanced by 3.08% and 4.21%, respectively.
This surge follows the announcement by Donald Trump of a 90-day freeze on tariffs imposed on China. In practical terms, U.S. tariffs will drop from 145% to 30%, while Chinese tariffs on American products will be set at 10%. This “complete reset of trade relations” was praised by the U.S. President.
Paradoxically, Bitcoin (BTC), often seen as a safe-haven asset, saw its value drop by 1.43% over the last 24 hours, hitting a low of $100,700, now standing at $103,583. This decline occurred as the price of gold also dropped 3.1%, falling to $3,223.26.
This dynamic raises questions about Bitcoin’s positioning: is it now aligning more with high-risk assets than safe-haven values? Investors seem to be reclassifying digital gold into the category of assets correlated with traditional markets.
Stocks Exposed to China See Significant Growth
Tech giants, heavily reliant on China for trade, greatly benefited from this trade de-escalation. Amazon surged by 8.01%, Apple by 6.39%, Tesla by 6.48%, and Nvidia by 5.12%. These performances also boosted the dollar, with its index climbing by 1.59%.
This exceptional stock market day once again questions the strategic positioning of Bitcoin. The notion of an asset completely uncorrelated to markets seems in doubt, with investors potentially repositioning it in the high-risk asset category.
In this context, institutional investors would be wise to closely monitor correction or accumulation movements on Bitcoin in the coming days. With Bitcoin hovering around $100,000, every geopolitical announcement could now act as a potent bullish or bearish catalyst.
According to Vincent Ganne, a technical analyst and crypto macro strategist based in Paris, “this event confirms that Bitcoin, despite originating from the decentralized ecosystem, is increasingly integrated into the global financial system. It is becoming sensitive to macroeconomic… and political leverage.”
In essence, Bitcoin remains volatile amidst traditional market optimism. This has also shown that it can temporarily lose its safe-haven function against assets like the dollar or tech stocks depending on macroeconomic conditions.
Therefore, the geopolitical context, particularly U.S.-China relations, becomes a decisive factor in Bitcoin’s performance in the coming days.
