Bitcoin Sinks Below $80K as U.S.-China Trade Tensions Escalate, Nasdaq Slides, Gold Hits Record
Global markets turned sharply lower Thursday as escalating trade tensions between the U.S. and China reignited risk aversion across asset classes. Bitcoin (BTC) dropped 4% to under $80,000, giving up much of its previous day’s rally, while the Nasdaq tumbled 5.5%, reversing gains from Wednesday’s relief bounce.
The trigger: market confusion and concern after a circulating White House source claimed the total tariff rate on Chinese imports had reached 145%, up from President Trump’s previously stated 125%. The breakdown includes a 125% “reciprocal” tariff and an additional 20% penalty on fentanyl-linked goods.
Key crypto stocks followed the broader sell-off:
- MicroStrategy (MSTR) slid 11.2%
- Coinbase (COIN) dropped 8.1%
- Marathon Digital (MARA) lost 9.3%
China’s countermeasure — cutting American film imports — added fuel to the fire, signaling the trade conflict may intensify and further strain diplomatic ties.
Meanwhile, gold surged 3% to an all-time high of $3,168, as investors rushed to safety. The U.S. Dollar Index (DXY) fell below 101, unwinding its entire November rally and now sits 9% below January levels.
“Markets are operating in a highly reactive environment,” said Kirill Kretov, senior strategist at CoinPanel.
“Tariffs and political headlines are now macro drivers. Each escalation narrows the Fed’s options and rattles forward guidance.”
With volatility back in full swing, traders are bracing for more sharp swings ahead as political risk drives investor behavior across crypto and traditional markets alike.
