Virtual assets fall due to US-China tariff conflict… Bitcoin falls to $76,000 [Decenter Market Status]

As Donald Trump officially announced a 104% high tariff on China, stocks and cryptocurrencies simultaneously declined. However, some suggest that the U.S. fiscal imbalance and monetary policy limitations could be a long-term positive for Bitcoin (BTC).

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 8 AM on the same day, BTC dropped 4.08% from the previous day to $76,662.73. Ethereum (ETH), the leading altcoin, is trading at $1,466.38, down 7.10%. Although the first XRP futures ETF was launched on the U.S. stock market on the 8th, raising expectations, the price actually fell due to the overall deterioration of investment sentiment. XRP is trading at $1.802, down 6.90%.



The domestic market shows a similar trend. On Bithumb, BTC is down 1.96% from the previous day at 115,115,000 won. ETH has fallen 3.75% to 225,000 won, and XRP has dropped 4.65% to 2,708 won.

With the reignition of the U.S.-China trade war causing investment sentiment to shrink, cryptocurrencies and the New York Stock Exchange declined in tandem. President Trump reiterated his existing plan to fully apply mutual tariffs starting from 0:01 AM Eastern Time on the 9th. He plans to impose a total of 104% ultra-high tariffs on China, including a retaliatory 50%, and will impose tariffs of 11-50% on 86 countries without exception. This has reignited global trade conflicts.

After reconfirming the tariff measures, the New York Stock Exchange closed uniformly lower. On the 8th, the Dow Jones Industrial Average closed at 37,645.59, down 320.01 points (0.84%) from the previous session. The S&P 500 index fell 1.57% to 4,982.77, and the Nasdaq index, which focuses on tech stocks, closed 2.15% lower at 15,267.91. This is the first time the S&P 500 index has fallen below the 5,000 mark since April 2024. The index has fallen 19% from its February high, approaching the bear market entry criterion of a 20% decline. The Dow and S&P 500 have declined for four consecutive trading days.

However, some argue that this macroeconomic uncertainty could highlight BTC's long-term attractiveness. Cointelegraph noted, "In the short term, the positive correlation between BTC and the stock market is expected to continue," but also pointed out that "the U.S. government's fiscal imbalance could act as a medium to long-term factor for BTC's rise." BTC, with its fixed issuance, is seen as a means to avoid risks associated with monetary supply expansion.

The Crypto Fear and Greed Index by cryptocurrency data analysis company Alternative.me remains in an "extreme fear" state, rising 1 point from the previous day to 24 points. The index indicates that the closer to 0, the more constrained the investment sentiment, while closer to 100 indicates market overheating.

Reporter Do Ye-ri

yeri.do@sedaily.com