Bitcoin Drops Amid Global Recession Fears as Trump's Tariffs Spark Market Turmoil

Bitcoin Suffers Amid Economic Uncertainty

Bitcoin fell 0.3% to $82,127.0 on Friday as global markets reacted to U.S. President Donald Trump's sweeping tariffs, which have heightened fears of a potential recession. The new trade policy, announced on Thursday, includes a 10% universal tariff on all imported goods effective April 5, 2025, and reciprocal tariffs targeting specific countries starting April 9, 2025.

China now faces a combined tariff of 54%, while other major economies like Japan, the European Union, India, and Vietnam will see tariffs ranging from 20% to 46%. These measures have sparked concerns over global trade slowdowns, supply chain disruptions, and weakened corporate earnings.

Traditional Safe-Haven Assets Gain Favor

Investors are shifting toward traditional safe-haven assets like gold, while cryptocurrencies, often seen as alternative hedges, face pressure. Tighter financial conditions and rising recession risks are reducing speculative appetite, a key driver for the volatile crypto market. Analysts warn that further economic deterioration could worsen liquidity concerns and reduce investor risk tolerance, potentially accelerating declines in the crypto market.

Key Data and Policy Signals in Focus

Markets are closely watching the U.S. nonfarm payrolls data and any policy signals from Federal Reserve Chair Jerome Powell. These developments could indicate whether the Fed may ease monetary policy to address economic weakness.

GameStop Sees Leadership Stake Increase

In related news, GameStop Chairman and CEO Ryan Cohen has increased his stake in the company to 8.4% by purchasing 500,000 additional shares worth approximately $10.8 million. This move follows GameStop's announcement to allocate part of its cash reserves to Bitcoin, supported by a recent $1.5 billion funding round from a convertible note offering.

Altcoins Show Mixed Performance

Altcoins saw mixed results on Friday amid tight trading ranges. Ethereum dropped 0.6% to $1,773.37, while XRP gained 1.8% to $2.04. Solana remained stable, Cardano rose 0.7%, and Polygon jumped 4%. Meme tokens also saw gains, with Dogecoin up 3% and $TRUMP rising 3.4%.

The crypto market remains highly sensitive to broader economic trends, with further movements likely influenced by macroeconomic data and policy decisions.