Bitcoin has surged past the $87,000 mark, defying a turbulent market reaction to former U.S. President Donald Trump’s unexpected 25% tariff on foreign-made cars and auto parts. The new trade policy, set to take effect on April 2, aims to boost American auto manufacturing but has sparked investor concerns over global market stability.
While stock markets tumbled—sending the S&P 500 down by 1% and the NASDAQ slipping 2%—Bitcoin defied the panic, climbing nearly 1% to trade at $87,500. Meanwhile, meme stock favorite GameStop (GME) skyrocketed 12% after its board unanimously approved Bitcoin as a treasury reserve asset, signaling increased corporate adoption of digital assets.
Market analysts at QCP Capital noted that Bitcoin ETFs continue to attract strong inflows, whereas Ethereum-based ETFs are experiencing outflows, suggesting shifting investor sentiment in the crypto space.
However, concerns remain about how the tariffs could impact the semiconductor industry, a critical component of Bitcoin mining. WeFi’s Head of Growth, Agne Linge, warned that rising chip costs and supply chain disruptions could reduce mining profitability and potentially affect network security.
As uncertainty looms, traditional safe-haven assets like gold are also seeing renewed demand, with prices climbing to a weekly high of $3,035. Analyst Sam Ruskin pointed out that both Bitcoin and gold are benefitting from investor unease, as fears of a trade war escalate.
With financial markets on edge, all eyes are now on how these tariffs will reshape global trade and whether Bitcoin’s bullish momentum can withstand the volatility.
Be the first to comment