U.S. markets faced renewed concern on Thursday as tensions between the U.S. and China escalated, causing significant Market declines after a brief recovery. Bitcoin dropped about 4%, falling below $80,000, following its previous 8% rise. This decline coincided with a sharp drop in the Nasdaq and considerable losses in crypto stocks like MicroStrategy and Coinbase. A White House announcement revealed a hike in tariff rates, intensifying the trade war with China. In contrast, gold soared to an all-time high, while the U.S. dollar weakened. Experts warn that this politically charged environment could complicate future Market decisions and economic stability.
After a brief uptick in U.S. markets on Wednesday, the landscape took a turn for the worse on Thursday, shifting concerns toward escalating tensions between the U.S. and China. Bitcoin, which had seen a significant rise of over 8% the previous day, fell about 4% below the $80,000 mark. This drop coincided with a notable plunge in the Nasdaq, which dropped 5.5% after a remarkable 12% rise on Wednesday. The sell-off highlights traders’ anxiety over President Trump’s evolving tariff strategy.
Many analysts, including Kirill Kretov from CoinPanel, voiced concerns about the uncertainty in the current macro environment. Kretov noted that the fluctuating trade policies could further complicate the Federal Reserve’s decisions, potentially affecting inflation and Market stability.
Crypto stocks were also affected, with MicroStrategy down by 11.2%, and Coinbase and Marathon Digital falling by 8.1% and 9.3%, respectively. This trend was exacerbated by a circulating tweet indicating a new total tariff rate on China at 145%, compared to the previously stated 125%. China has retaliated by threatening to decrease imports of American films, intensifying the ongoing trade conflict.
In these tumultuous times, gold has surged, hitting a record high of $3,168, while the U.S. dollar index saw a decline below 101, reversing its gains from November and marking a 9% drop from January highs. With the future still uncertain, the trade policy remains a critical area to watch.
In summary, as international trade tensions rise, Market volatility remains a significant challenge for investors. Keeping an eye on developments in U.S.-China relations and their potential impacts on financial markets is essential for both traders and enthusiasts alike.
Tags: Bitcoin, U.S. markets, China trade relations, cryptocurrency, stock Market, inflation, tariffs
Why is Bitcoin Price (BTC) Lower on Thursday? FAQs
1. Why does the price of Bitcoin change every week?
Bitcoin’s price can change a lot due to Market trends, news, and investor behavior. Some people buy and sell based on what they think will happen, leading to price shifts throughout the week.
2. Is Thursday a common day for Bitcoin price drops?
Yes, many traders notice that Thursdays sometimes bring lower prices due to profit-taking before the weekend. A drop early in the weekend could lead people to decide to sell their assets.
3. What factors cause Bitcoin prices to fall on Thursdays?
Several things can cause Bitcoin’s price to drop, like negative news in the Market, changes in regulations, or even major investors selling their holdings. Any of these can make people nervous, leading to lower prices.
4. Do trading volumes affect Bitcoin’s price on Thursdays?
Absolutely! On Thursdays, trading volumes can be lower, making it easier for the price to drop if more people want to sell than buy. Less demand can pull the price down.
5. Can I predict Bitcoin price changes?
Predicting Bitcoin’s price can be tough. While some trends can give hints, many factors can influence the price. It’s best to stay informed and watch Market trends for better understanding.