The recent suspension of tariffs on Chinese imports announced by the Trump administration is impacting the MOVE index and Bitcoin's outlook in the stock market.
MOVE Index Decline
The MOVE index, measuring bond volatility, dropped to 128.83 following the US decision to pause tariffs for 90 days. This tariff suspension is disrupting the typical correlation of Bitcoin with the stock markets, creating potential for volatility change.
Bitcoin's Future Amid Economic Uncertainties
According to Arthur Hayes, former CEO of BitMEX, the change in the MOVE index may signal that Bitcoin could diverge from stock trends going forward and instead amplify certain movements. "We will be back soon. Enjoy while the party still lasts. Next time, BTC may not be the first to follow stocks into trouble, but rather continue to amplify." CITE_W_A
Market Response to Tariff Changes
Market responses to the tariff suspension range from optimism to concerns about long-term economic impacts. Bitcoin is currently valued at $81,992.70, with a market cap of $1.63 trillion and a 26.04% increase in trading volume over the past 24 hours. Its performance shows a 6.16% rise in 24 hours but a 13.64% decline over the last 90 days.
In conclusion, the suspension of Trump’s tariffs is shifting the dynamics of both the stock market and Bitcoin, creating new opportunities and risks for investors amid economic uncertainty.
