Crypto Stays Resilient as Trump Tariffs Rattle Global Markets

Markets plunged into turmoil after U.S. President Donald Trump unveiled a sweeping set of tariffs aimed at reshaping global trade. But while equities unraveled and volatility spiked, crypto assets largely held their ground—underscoring their growing distinction from broader risk markets.

The White House announced a blanket 10% tariff on all U.S. imports alongside “reciprocal” duties targeting trade surplus countries. The policy sparked a brutal selloff in equities: the S&P 500 dropped 4.84%, the Nasdaq slid 5.5%, and the Russell 2000 fell 6.5%, now teetering on bear market territory.

Bitcoin (BTC) initially sold off, dropping from an intraday high of $88,000 to as low as $81.2K, before finding a foothold. As of Thursday morning, BTC trades at $82,764—down just 0.83% over 24 hours. The total crypto market cap slipped 1% to $2.65 trillion, a modest pullback relative to the carnage in equities.

“Crypto markets are showing surprising resilience amid this macro storm,” said BRN analyst Valentin Fournier. “While equities are getting re-rated on supply chain risk and margin compression, BTC has held up, likely a reflection of its increasingly idiosyncratic flows.”

More than $221 million in long crypto positions were liquidated during the session, with BTC bearing the brunt. Still, the selloff was far shallower than that of high-beta tech stocks. Coinbase dropped 10%, Strategy sank 9%, and even mega caps like Apple and Amazon shed 9% apiece. The VIX spiked above 29, signaling extreme investor anxiety.

Bond markets rallied hard, with the U.S. 10-year yield dipping below 4% for the first time since October. Short-end yields followed, as traders ramped up expectations for Federal Reserve rate cuts. Markets are now fully pricing in a June cut, earlier than the previous July consensus, and assign a 50% chance of a fourth rate cut before year-end.

“We’re watching a classic flight to safety,” said Fournier. “Rate expectations are shifting fast, which could eventually benefit crypto, particularly if real yields drop further.”

The selloff comes ahead of a critical U.S. non-farm payrolls report, which could add to the Fed’s dovish tilt if it shows further labor market softening.

Despite the turbulence, President Trump downplayed market fears. “It’s going very well,” he said in brief remarks. “The market is going to boom.” He added that the reaction was “expected” and reiterated openness to negotiating tariffs if countries “propose something phenomenal.”

Trump also signaled possible additional levies on pharmaceutical imports and semiconductor chips, adding to the uncertainty clouding global supply chains.

Still, crypto markets remain in a relatively strong technical posture. Derivatives markets continue to show a preference for downside protection, but the positioning appears cleaner after Wednesday’s washout.

“With equities oversold and crypto being recalibrated, the setup for a near-term bounce is in place,” said the BRN analyst. “But we’re not chasing anything yet. The real pivot comes when the macro narrative shifts from fear to policy support.”