On April 3, the S&P 500 opened 3.65% lower following President Donald Trump’s announcement of sweeping tariff policies, with pre-market pricing at $543.89. The move includes blanket 10% tariffs on all imports and targeted reciprocal tariffs of up to 48%, causing renewed volatility in global markets. Traders responded swiftly to the policy shift, with the crypto market seeing $486.55 million in liquidations within 24 hours, led by short positions. The FTSE 100 Index also dropped 1.75% to 8,457.71, and the Polymarket prediction platform saw an increase in recession probabilities.
The announcement of the tariffs has led to a reversal of earlier optimism in digital asset markets, with Bitcoin falling from $88,500 to below $82,000. This drop in Bitcoin prices has raised concerns about inflationary pressures, heightened input costs, and unresolved supply chain dependencies. Questions have also been raised about the tariff benchmarking data, as figures cited by the Trump administration differ from references by the WTO and World Bank, casting doubts on the long-term viability of the policy.
As markets recalibrate in response to the return of trade-based economic brinkmanship, Bitcoin is attempting to hold the $82,000 level amid continued pressure from liquidity-driven selloffs. If the S&P 500 closes near its expected opening price, it will mark the 11th largest single-day drop in history. Analysts are closely monitoring the situation for further developments and potential impacts on the global economy.
