Markets Rattle Again as Bitcoin Falls Below $80K, Nasdaq Plunges 5.5% on Escalating U.S.-China Tariff Tensions
Gold hits new all-time high, while crypto stocks tumble amid policy uncertainty.
After a brief midweek bounce, markets were back in the red Thursday as renewed fears of a deepening U.S.-China trade conflict sent shockwaves through equities and crypto alike.
Bitcoin (BTC) fell over 4%, slipping below the $80,000 mark, erasing much of its 8% gain from the day before. The downturn mirrored a sharp 5.5% drop in the Nasdaq, which followed a massive 12% surge on Wednesday. Investors are now on edge, closely watching President Donald Trump’s next move on tariffs.
Crypto-exposed equities also felt the pressure:
- MicroStrategy (MSTR) tumbled 11.2%
- Coinbase (COIN) fell 8.1%
- Marathon Digital (MARA) declined 9.3%
The sell-off accelerated after a tweet alleged a White House official confirmed the effective tariff rate on Chinese goods had jumped to 145%, rather than the 125% figure Trump had cited. This spike includes:
- A jump in the “reciprocal” tariff rate from 84% to 125%
- An additional 20% tariff on fentanyl-related products
In retaliation, China announced a cutback in U.S. movie imports, a symbolic blow intensifying the already heated trade war.
Amid the chaos, gold surged 3% to a record $3,168, reaffirming its safe-haven status. Meanwhile, the U.S. Dollar Index (DXY) slid below 101, erasing its November gains and marking a 9% drop from January highs.
“The macro outlook is anything but secure,” said Kirill Kretov, senior expert at CoinPanel.
“We’re in a politically charged environment where headlines can instantly shift sentiment. Trump’s unpredictable trade strategy is now a key swing factor that could influence the Fed’s path and disrupt the market narrative.”
With markets hanging on every headline, traders are bracing for more volatility as geopolitical and economic storylines collide.
