Cryptocurrency and traditional financial markets started strong today. Bitcoin temporarily rose by 5% due to optimism about tariff negotiations. Institutional investors from China and the United States want to avoid a trade war if possible.
Despite these encouraging signals, no actual agreement has been reached. Bitcoin subsequently experienced losses. The entire market remains in a volatile state until the situation becomes clearer.
Bitcoin, How Under Tariffs?
The cryptocurrency market is currently filled with fear. It is difficult to determine a safe choice going forward. After the market experienced massive liquidation yesterday, today started with cautious optimism.
This trend was particularly influenced by Bitcoin. It rose by about 5% with hope for a potential agreement on Trump's tariffs.
Bitcoin price has fluctuated significantly due to tariffs. As speculation about selling increases, the entire market is in a state of confusion.
Today, the Dow Jones Industrial Average rose by 1,285 points, or 3.4%. The S&P 500 and Nasdaq Composite also rose by 3.4% and 3.3% respectively. However, hundreds of stocks have fallen by more than 20%.
Meanwhile, Bitcoin has several advantages that can protect against tariff volatility. For example, according to a recent report from Binance Research, the least risky cryptocurrency assets are best protected from declines.
This includes real-world assets (RWA) and centralized exchanges, with Bitcoin next in line.
Moreover, the market is very optimistic about an agreement to avoid tariffs. Yesterday, rumors of a pause triggered a rally in the trillions of dollars. This highlights the desperation of traders hoping for good news.
Despite retaliatory tariffs, China wants to avoid a full-scale trade war with the United States. Trump fueled optimism by claiming progress with China and South Korea.
I just had a great call with the Acting President of South Korea. We talked about their tremendous and unsustainable Surplus, Tariffs, Shipbuilding, large scale purchase of U.S. LNG, their joint venture in an Alaska Pipeline, and payment for the big time Military Protection we…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 8, 2025
Nevertheless, it is important not to overestimate Bitcoin's chances of success under tariffs. Despite hopes on both sides of the Pacific, China has confirmed it is prepared for a trade war if Trump forces it.
This could explain the Bitcoin price decline despite strong performance since yesterday. In the end, we can only wait and hope.
