US Stock Market Sheds $2.5 Trillion, BTC Price Reclaims $88,000

The broader financial market is shaking up due to concerns ignited by the tariff trade war. This happens as BTC price take a leap back to the older high levels from which it has dropped down.

Massive losses have been recorded in the S&P 500 due to the impact of the global tariff strain.

Notably, trillions were lost despite the 90-day tariff “pause” authorized by President Donald Trump on April 9, 2025.

Trade War Fallout Shreds Tech Stocks

According to ‘The Kobeissi Letter,’ an industry-leading commentary platform, about $2.5 Trillion has been lost since President Trump announced the pause.

This loss was likely triggered by investors’ anxiety over delayed trade deals with American allies.

For instance, many expected Japan, a notable ally, to reach an agreement with the US swiftly.

However, Ryosei Akazawa, Japan’s negotiator, shocked the market by insisting that they “will not just keep conceding” to the U.S. demands and terms. Akazawa maintains that it is not in Japan’s national interest to do so.

Besides Japan’s pushback, its Asian neighbors, China, have escalated their rhetoric.

Beijing has warned that countries that cooperate with the U.S. to compromise their interests will face consequences.

That is, countries like Japan, a U.S. ally, might face retaliatory trade tariffs.

This further complicates the already tense situation, as countries either have to side with the U.S. or China.

The losses experienced in the global financial sector come from obvious delays in sealing trade deals, which investors anticipated were imminent.

It is already 12 days into the 90-day pause, and the expected deals have not materialized.

This is causing the earlier rise in stock value to drop as the assets are quickly correcting, having jumped on unrealized assumptions.

Data shows that major tech stocks such as Microsoft, Apple, and Nvidia declined in value by between 2% and 9%.

This highlights the huge impact of the trade war uncertainties on the technology sector of the financial market.

This has raised worries mainly because big tech has driven much of the market gains in recent years. For instance, Nvidia has shed 15% within one week.

Meanwhile, other “Magnificent 7” stocks have dropped by 10%. The decline will likely continue unless actual trade deals happen.

If not, the market might continue its fall, given that the broader financial sector depends on these stocks to stay afloat.

Bitcoin and Gold Shine as Safe Havens

The current tensions and rising uncertainty have made Bitcoin and gold safe havens for investors.

However, with the U.S. dollar index (DXY) hitting a 52-week low, many investors are beginning to lose confidence in the currency.

Interestingly, gold and Bitcoin are recording a surge simultaneously. This development signals that traditional safe havens like bonds are losing favor among investors.

Notably, between April 7th and now, gold has increased in value by over 15% while Bitcoin has registered over 12% growth.

Eyes on $100K as BTC Price Resurfaces Above $90K

Digital assets could benefit from the absence of a trade deal with Japan, Mexico, and other countries.

Bitcoin, in particular, could rebound and retest the $100,000 psychological level, which it last traded at on February 3, 2025.

The leading digital asset has shown potential to soar to a new level, hitting $88,460.10 in earlier trading on April 21.

As of this writing, BTC price has witnessed a slight correction and was trading at $91,441.14, representing a 5.25% increase in the last 24 hours.

Investors are also bullish, with trading volume up by 13.71% to $44.84 billion within the same time frame.

If current momentum lingers, it is a matter of “when” before Bitcoin retests the $100,000 price. Analysts have predicted that Bitcoin could reach $250,000 this year.

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