BTC/USD: Bitcoin Oddly Steady Near $83,000 as Tariff Onslaught Breaks Stock Markets

Violent selloff in equities didn’t spill over to the crypto space as Bitcoin was largely unfazed in all that market mayhem. But why?

💎 Bitcoin Muted at $83,000

• Bitcoin prices BTCUSD floated sideways Friday, surprisingly extending their Thursday drowsiness, as crypto traders didn’t panic amid all the selling that was happening over at the stock corner.
• A single Bitcoin this morning was going for about the same price as earlier in the week — $83,000 to $84,000. The OG cryptocurrency was seemingly unfazed by Donald Trump’s lofty tariffs that threaten to derail global growth and economic expansion. So why the muted reaction?

👀 Stocks vs Crypto = Who Wins?

• Stocks were breaking from Trump’s hostile tariff agenda with import duties to the tune of 54% for China and 20% for the European Union. All that could potentially hurt global supply chains, raise inflation and knock consumer confidence and spending behavior. Crypto? That’s beyond borders.
• Digital assets are traded in a decentralized environment, meaning it’s not a single place where the deals are happening. This alleviates the sector from supply chain shocks and other geopolitical disruptions.

🤔 Paradigm Shift in the Making?

• Yet still, it’s bizarre that crypto turned out as a relative safe haven to market participants. The prospects of slowing growth and higher consumer prices could prompt the Federal Reserve to hit the brakes on further cuts to interest rates (something many consider already done).
• If that happens, the whole market — from stocks, to forex, to crypto — will feel the effect. Liquidity would get sucked out as higher borrowing costs would dent investor appetite for risk assets. For now, however, none of that has materialized, so crypto traders — enjoy the calmness.