Bitcoin (BTC-USD) climbed about 1% to $87,500 in early trading on Thursday, defying a shaky global financial landscape rocked by US President Donald Trump’s announcement of a 25% tariff on foreign-made automobiles and auto parts, set to kick in on April 2.
Meanwhile, traditional markets faltered, with the S&P 500 and NASDAQ Composite sliding 1% and 2%, respectively, on Wednesday, as investors braced for turbulence.
Trump’s Tariff Bombshell Sparks Market Jitters
The new tariff, designed to boost domestic car manufacturing, has fueled fears of a global trade war, amplifying volatility in equities. Trump’s broader trade agenda—including a 25% duty on imports from Canada and Mexico, a 20% levy on Chinese goods, and threats of steeper tariffs on the EU and Canada if they “do economic harm”—has deepened the risk-off mood.
“If the European Union works with Canada to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both,” Trump warned on Truth Social Thursday, sending investor caution soaring.
Safe Havens Shine: Bitcoin and Gold Surge
Amid the chaos, safe havens are gaining traction. Gold spiked to a weekly high of $3,035 on Thursday as investors sought shelter. Bitcoin, too, has held firm, with Messari analyst Sam Ruskin noting on X.com: “Bitcoin and gold’s pump suggests investors are seeking safe havens amid widespread disappointment post-inauguration and concerns over a global trade war.”
Since Trump’s November 5, 2024, election win, bitcoin has soared 22.3%, outpacing gold’s 9.3% rise and the S&P 500’s 2.5% drop, underscoring its resilience.
GameStop’s Bitcoin Bet Fails to Lift Crypto Sentiment
While bitcoin edges up, broader crypto enthusiasm remains tepid. GameStop (GME) surged nearly 12% Wednesday after its board greenlit a $1.3 billion (£1.01 billion) capital raise to add bitcoin as a treasury reserve asset.
Yet, QCP Capital analysts observed: “GameStop’s surprise bitcoin allocation has yet to lift broader sentiment in the cryptocurrency market.” Spot bitcoin ETFs see steady inflows, but Ethereum (ETH-USD) ETFs are bleeding, hinting at uneven confidence. “Uncertainty surrounding US trade policy remains front of mind,” QCP added, predicting “sideways volatility” until clarity emerges.
