Trump’s Tariff Shock Slams Bitcoin Futures as Markets Spiral
Bitcoin CME futures opened with a steep gap lower on Monday after President Donald Trump firmly ruled out any near-term trade agreement with China, further inflaming already jittery markets.
The April contract on the CME kicked off at $79,590 — a 5.6% drop from Friday’s close of $84,250 — before tumbling to $76,800, according to CoinDesk data. The sharp move reflected growing anxiety among institutional investors, with bitcoin’s price action increasingly mirroring global macro uncertainty.
Equity futures also sank in early Asia trading, with Dow futures down nearly 900 points. Chinese equities cratered, and Japan’s Nikkei tripped circuit breakers. Major banks — including JPMorgan, Goldman Sachs, and S&P Global — rushed to raise the odds of a U.S. recession this year.
Speaking aboard Air Force One, Trump took a hardline stance. “Unless the trade imbalance with China is fixed, there won’t be a deal,” he said. He went on to describe market pain as “medicine” that must be taken to restore long-term economic health.
“I don’t want markets to go down, but sometimes you’ve got to take your medicine,” the president said, referencing the massive selloff sparked by his administration’s blanket tariffs on 180 nations.
Institutional Interest on the Retreat
Open interest in CME’s bitcoin futures has plunged to 140.5K — the lowest level since August 2024 — down significantly from a December peak of over 281K contracts. The pullback suggests big-money players may be stepping to the sidelines amid heightened volatility and policy unpredictability.
Interestingly, open interest across global futures and perpetuals outside of CME has surged in contrast — from 400K to over 520K BTC in the past month — hinting at increased short positioning and tactical hedging.
This divergence reflects a split market: institutional players are cautious, while derivatives traders are betting on further downside. If sentiment shifts again, it could spark another wave of volatility — or a sharp reversal.
