Since the announcement of tariffs on April 2, more than $5 trillion has been wiped off global stock markets, leading economists around the globe to express concerns that this ‘Liberation Day’ might trigger a recession severe enough to “potentially cripple much of the global economy.”
Reacting to the fierce market downturns, the president urged Federal Reserve Chairman Jerome Powell to initiate interest rate cuts, branding it the “ideal moment” on his Truth Social platform. However, Powell is inclined to maintain his current approach, anticipating that the aggressive tariffs could lead to increased inflation and a slowdown in growth.
Powell has remarked that these tariffs might induce a short-term spike in inflation that could prove to be long-lasting, making it premature to adjust monetary policy without clearer economic indicators.
Some critics, including Trump, contend that Powell’s caution may lead him to miss the chance for timely rate cuts. In a recent post on Truth Social, Trump stated:
“He [Jerome Powell] is always ‘late,’ but he could now shift his narrative, and quickly… CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Nonetheless, Powell stresses that the Fed is in no rush, opting to wait for more definitive economic signals before making any policy changes. This prudent strategy stems from concerns over inflation, an enduring problem he foresees could be aggravated by the tariffs.
Even with Trump’s push for prompt action, Powell remains focused on ensuring inflation stability, a stance that might leave investors eager for quick rate cuts feeling frustrated.
As markets plunge, Bitcoin surfaces as a safe haven
As uncertainty looms regarding tariff discussions, retaliations, or potential rate reductions to avert an impending economic disaster, many are turning their attention to Bitcoin, which appears to have detached itself from its long-standing relationship with the stock market and other risk-sensitive global assets.
The Dow Jones Industrial Average plummeted by over 2,200 points on Friday, adding to the previous day’s loss of 1,679 points—marking the worst two-day performance ever—while the Nasdaq and S&P 500 suffered significant declines reminiscent of the early COVID days. In contrast, Bitcoin remained largely stable, hovering around $83k, even reporting a slight increase at the time of this writing.
Rajat Soni, a CFA charter holder and analyst in Bitcoin and finance, observed:
“The S&P 500 has lost ALL OF ITS RETURNS since March 2024. Bitcoin is up ~30% in the same timeframe.”
Tether CEO Paolo Ardoino simply stated, “Bitcoin is the hedge.”
Joe Burnett, the Director of Market Research at the crypto financial firm Unchained, mentioned in a video post:
“With Trump’s tariffs in play, U.S. equities in free fall, and China retaliating, this might be one of the best moments to build a significant Bitcoin position. Not financial advice.”
Bitcoin Market Data
As of this report 3:24 pm UTC on Apr. 5, 2025, Bitcoin is ranked #1 by market capitalization, with its price showing a decrease of 0.32% over the past 24 hours. Bitcoin’s market cap stands at $1.64 trillion, with a 24-hour trading volume of $26.75 billion. Learn more about Bitcoin ›
Crypto Market Summary
As of this report 3:24 pm UTC on Apr. 5, 2025, the overall crypto market is valued at $2.65 trillion, with a 24-hour trading volume of $68.09 billion. Bitcoin’s dominance currently sits at 61.90%. Learn more about the crypto market ›
Mentioned in this article
