Bitcoin (BTC-USD) saw sharp volatility as global markets reacted to sweeping tariff announcements from US president Donald Trump. The cryptocurrency saw significant price swings, briefly rising above $87,000 (£66,172) before plunging as much as 5% from Wednesday’s highs.
Bitcoin (BTC-USD) has since stabilised, trading just above $83,500 — erasing all gains from earlier in the week.
Read more: Crypto live prices
The sell-off triggered over $180m in liquidations across bullish and bearish bitcoin bets on Thursday, according to data from CoinGlass. Bitcoin futures accounted for $62m in long and $118m in short liquidations. Ethereum (ETH-USD) futures saw $89m liquidated, with the majority long positions.
Stock markets worldwide tumbled in response to Trump’s self-proclaimed “Liberation Day,” during which he announced aggressive trade penalties.
The Nikkei 225 (^N225) in Japan slid 3%, while Hong Kong’s Hang Seng index (^HSI) fell 1.5%. US stock futures also pointed to steep losses, with Dow futures (YM=F) down 2.39%, S&P 500 futures (ES=F) declining 2.91%, and Nasdaq futures (NQ=F) sliding 3.23% ahead of Thursday’s market open. Retailers and tech stocks bore the brunt of the impact.
London’s benchmark index (^FTSE) was down 1.1% in early trade with mining companies and banks among the big fallers.
Read more: Pound rallies as dollar and oil prices drop after Trump’s tariff announcement
Trump’s new tariff regime includes a 25% levy on auto imports and a minimum 10% tariff on all foreign exports to the US. Major trading partners such as China and the European Union face additional duties, with some Chinese goods seeing a 50% increase in tariffs and Indian exports hit with a 26% hike.
During his White House address, Trump justified the measures as a step toward economic independence. “2 April 2025 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day we began to Make America Wealthy Again,” he said.
The tariff shock initially spurred a sell-off in risk assets, with bitcoin and equities facing downward pressure. However, some analysts see potential for a rebound.
“Despite near-term volatility, uncertainty is decreasing, and institutional buying pressure is returning. With key catalysts aligning, we expect bitcoin to rebuild momentum and make another attempt at $90,000 in the near future,” BRN analyst Valentin Fourner said.
The broader market reaction underscores deep concerns about the potential economic fallout from Trump’s tariff policy. While commodities like gold benefit from risk aversion, cryptocurrencies and equities face headwinds.
