Bitcoin fell to $82,100, Ethereum fell to $1,790 and XRP to $2.13, extending losses along with US stock futures as investors responded to rising trade tensions and inflation concerns. S&P 500 and NASDAQ-100 futures fell by about 0.7%, a 0.8% decline, while Dow futures fell by 0.55%. Investor sentiment is under pressure that is expected to impose mutual trade measures on at least 25 countries ahead of President Donald Trump’s April 2nd tariff announcement. Barclays estimates that auto-related tariffs alone could affect annual imports to more than $275 billion. The broader tariff package, part of Trump’s proposed “external revenue services,” is projected to generate $600 billion in revenue.
Due to the market slump, cryptocurrency investors have moved their capital to stubcoins and tokenized real-world assets (RWAS). IntotheBlock reports that these assets are seeing stable inflows as safe home investments. However, because these assets exist in the chain, even mild changes in emotions can cause significant price fluctuations due to liquidity. According to RWA.xyz, RWA exceeded its all-time high of $17 billion in early February, and is now close to $20 billion. Some analysts believe that if Bitcoin is struggling to regain momentum, RWA could reach a $50 billion valuation by the end of 2025, capturing a large portion of the $450 trillion global asset market.
Since Trump announced tariffs on Chinese products on January 20th, Bitcoin has fallen by 19%, while the S&P 500 has fallen by more than 7%. “During the threat of tariffs from President Trump and the ongoing macro uncertainty, risk appetite remains stifled,” said Nexo analyst Iliya Kalchev. Meanwhile, concerns about inflation continue to grow. The US Department of Commerce reported that the Federal Reserve’s priority inflation measures, the Core Personal Consumption Expense (PCE) Price Index, rose 0.4% in February, the largest monthly increase in over a year. Economists expected an increase of 0.3%.
Kobeissi’s letter reported that US consumer sentiment has dropped by 20 points in the past month, dropping to 57 readings, the lowest outside of a formal recession. “The slowdown in the economy has clearly begun,” the publication said. Investors respond by turning from risky positions, contributing to ongoing volatility in both traditional and digital markets. The so-called “magnificent 7” tech stocks have lost more than $3 trillion in recent weeks.
Bitcoin mining remains a growing sector, but regulatory uncertainty and inflationary pressures present challenges. At a mining disruption conference held in Fort Lauderdale, a miner highlighted Trump’s message. Analysts warn that economic and regulatory conditions will shape the future of the sector, but industry participants remain optimistic.
Juan Pellicer, a senior research analyst at Intotheblock, said many investors had anticipated economic benefits under Trump, but now they are adapting to geopolitical tensions and growing uncertainty. Future tariff announcements are expected to provide more clarity to markets that have already experienced significant volatility.