Trump's Tariffs Torch Markets, Bitcoin Takes a Hit

On April 2, 2025, President Trump introduced what he called 'Liberation Day' tariffs, imposing a blanket 10% levy on most US imports. The move sparked chaos in global markets, with nearly $2.5 trillion in equity value evaporating over the next two days.

The S&P 500 plummeted between 4% and 12%, while the Dow Jones shed nearly 1,700 points on April 3, its worst single-day loss since mid-2020. The VIX spiked into the mid-40s, a clear indicator of market fear.

Crypto markets were not immune to the carnage, with Bitcoin dropping from nearly $88,000 to just over $82,000 during the initial sell-off. Investors scrambled for 'safer' assets, driving Treasury yields up and briefly pushing the 10-year to 4.6%.

The tariffs sparked a heated debate about the role of safe-haven assets like Bitcoin in times of economic uncertainty. While some argued that the cryptocurrency's fixed supply narrative would gain traction in a stagflationary scenario, others pointed out that its initial drop alongside stocks was a sign of weakness.