Bitcoin has fallen below the $80,000 threshold as investor sentiment shifted in response to changes in U.S. trade policy. Following a sharp rally earlier in the week, spurred by President Donald Trump’s announcement of a temporary pause in select U.S. tariffs, the cryptocurrency market experienced a significant pullback on Thursday.
Market Reaction
Bitcoin dropped more than 3%, settling around $79,614. The decline reflected a broader risk-off mood that affected both digital and traditional asset markets. Ethereum (ETH) and Solana (SOL) faced even steeper losses:
- Ethereum declined nearly 8%
- Solana dropped over 6%
Related equities were also hit hard. The shares of crypto exchange Coinbase fell by 4%, while bitcoin proxy Strategy slumped by 8%.
Tariff Pause: Short-Lived Optimism
The initial boost from the tariff pause announcement proved to be short-lived. Though the decision injected brief optimism into the markets, investor concerns resurfaced as broader macroeconomic implications—such as the lingering imposition of tariffs on Chinese imports—remain unresolved.
Bitcoin Still Holds Long-Term Gains
While Bitcoin has dipped beneath its year-to-date support level, it continues to outperform many stock market indices over a four-week period. This performance underscores its role as a speculative yet resilient asset amid economic uncertainty.
Looking Ahead
With macroeconomic variables and trade policies in flux, traders are bracing for increased volatility in the latter half of April. The market’s heightened sensitivity to policy changes suggests that further price swings could be imminent.
Read the full article on CNBC here.
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