Tariffs caused Bitcoin to decline less than equities or oil yet more than bonds and gold
The post Tariffs caused Bitcoin to decline less than equities or oil yet more than bonds and gold appeared on BitcoinEthereumNews.com.
Bitcoin continues to trade lower for April, surrendering the majority of its Q1 gains as global markets react to escalating US-China trade tensions. The move, tied to the US trade war, comes amid broader asset repricing, with Treasury yields falling, oil collapsing, and equities entering correction territory. Prices since tariffs announced (Source: TradingView) The above post-tariff chart captures the acute market response since President Trump’s April 2 announcement of sweeping trade penalties and China’s response of an 84% tariff on US goods, a move Beijing described as non-negotiable. Within days, oil prices collapsed by 20.92%, while SPY fell 10.23% and Bitcoin dropped 7.34%. Bond prices also declined, with US10 and CN10 down 2.42% and 2.58%, respectively, reflecting upward pressure on yields. Gold, often a traditional safe haven, retreated 2.83%, indicating that liquidity stress and risk-off sentiment dominated across asset classes. Bitcoin’s relative positioning, down less than SPY and oil but more than bonds and gold, shows that despite strategic reserve narratives, it remains partially tethered to broader macro volatility under acute market stress. Global assets since the US election (Source: TradingView) Their overall performance since Donald Trump’s election win solidifies Bitcoin’s relative resilience. Since the November 2024 US election, Bitcoin is up 11.51 %, and gold is closely trailing at 11.09 percent. Both assets have held ground as traditional markets repriced sharply. SPY has declined 14.42%, and oil prices have collapsed by over 20%, highlighting widespread macro stress. Meanwhile, the US and Chinese 10-year bond prices (US10 and CN10) have fallen 5.11% and 1.72%, respectively, consistent with expectations of persistent inflation or heightened issuance. BTC correlation with macro deepens Bitcoin’s performance since Trump’s inauguration initially tracked with a supportive policy environment. Public backing of crypto adoption, tokenization of reserves, and re-shoring initiatives contributed to a bullish narrative across digital assets.…
Filed under: News - @ April 9, 2025 2:24 pm