The crypto and stock markets have taken a hit following President Donald Trump's announcement of new tariffs. Both Bitcoin and Ether have seen significant drops as traders closely watch market movements.
Crypto and Stock Decline
Bitcoin fell to $92,681 in less than an hour, then slightly recovered to $93,831, marking a 7% decline. Ether also lost 20% of its value. The CoinDesk 20 index, tracking the 20 largest cryptocurrencies by market value, has dropped by 19% over the last 8 hours. Stocks also took a hit: Dow futures fell by 463 points, S&P 500 futures lost 1.6%, and Nasdaq-100 futures dropped 2.1%.
Impact of New Tariffs on the Market
Trump's tariff measures will affect US trade with Canada, Mexico, and China, amounting to $1.6 trillion annually. Over 120 major companies in the S&P 500, including Alphabet, Amazon, Walt Disney, and Palantir, are set to report earnings this week. AI stocks have been hit hardest: Nvidia lost over 7%, Super Micro slid 8.8%, AMD fell 5.1%, and Arm dropped 6.2%.
Expert Commentary and Future Outlook
Bitcoin is down 16% from its January high of $109,350. However, seasoned crypto traders are not surprised, as Bitcoin has a history of 30% corrections. Arthur Hayes, founder of BitMEX, believes that Bitcoin may benefit in the long run, as a trade war could weaken the US dollar.
The market remains in a state of uncertainty amidst tariff measures and upcoming US economic reports. Experts are attempting to forecast further developments in the crypto and stock sectors.
