Bitcoin fell below the $80,000 i.e, ₹71,16,659.96 INR mark on Thursday, dropping approximately 4% to $79,220.55 as renewed tensions between the United States and China rattled financial markets globally. The decline erased much of Wednesday’s 8% rally, highlighting the cryptocurrency’s continued correlation with traditional tech stocks.
LIVE: BITCOIN PRICE WATCH 24/7 WITH @KRAKENDESKTOP 💥 https://t.co/eELsjK3iCz
— Bitcoin Magazine (@BitcoinMagazine) March 24, 2025
Market Plunge Follows White House Tariff Clarification
The sell-off intensified after the White House clarified that the total tariff rate on Chinese imports now stands at 145%, significantly higher than the 125% President Trump had announced just a day earlier. According to the Executive Order, the “reciprocal” tariff rate increased from 84% to 125% overnight, which, when combined with the existing 20% tariff on fentanyl-related goods, brings the total to 145%.
This revelation helped push the Nasdaq from a 4% loss to a steep 5.5% decline, with Bitcoin following the downward trajectory.
Crypto Stocks Hit Hard
Crypto-related stocks weren’t spared in Thursday’s bloodbath:
- MicroStrategy (MSTR) plummeted 11.2%
- Coinbase (COIN) fell 8.1%
- Marathon Digital (MARA) dropped 9.3%
China Retaliates
In response to Trump’s initial tariffs, China announced it would reduce imports of American movies, further intensifying the trade war between the world’s two largest economies.
Gold Surges as Dollar Weakens
While cryptocurrency and tech stocks tumbled, gold continued its impressive run, surging 3% to reach a new all-time high of $3,168. Meanwhile, the DXY index, which measures the U.S. dollar against a basket of foreign currencies, dropped below 101, effectively reversing its entire November rally and marking a 9% decline from January highs.
Also Read: Where Will Bitcoin Be in 2030?
Analysts Point to Political Uncertainty
“The macro outlook is anything but secure,” said Kirill Kretov, senior expert at crypto trading automation platform CoinPanel. “This is a politically charged environment, where headlines have the power to reshape sentiment almost instantly.“
Kretov identified trade policy as a key swing factor, noting that the Trump administration’s evolving tariff policies are adding to inflation concerns. “Any escalation on this front would complicate the Fed’s decision-making and potentially derail the current market narrative,” he added.
As geopolitical tensions rise and markets remain volatile, investors are increasingly shifting their focus from inflation concerns to geopolitical risks, carefully watching for any further developments in the escalating US-China trade conflict.
Never miss a beat in the crypto world! Check Crypto News Today for Bitcoin updates, Ethereum news, and the latest blockchain trends shaping the future of digital assets.
