- Stock markets globally are down as US-China trade tensions escalate, with China boycotting Boeing products in response to new US tariffs, while Trump seeks talks but China demands respect first.
- Semiconductor companies are suffering with Nvidia losing 6.87% and ASML dropping 5% after Trump’s policy shift, raising concerns across technology markets.
- Cryptocurrency markets are showing resilience with Bitcoin up 1% and the total crypto market cap reaching US$2.65 trillion, though analysts warn macroeconomic uncertainty remains.
- Analysts note Bitcoin’s recent drawdowns are less severe than historical corrections, suggesting the asset is maturing with a “more resilient demand profile” despite newer investors facing losses while long-term holders remain profitable.
Global stock markets are down, as uncertainty around tariffs continues to cause headaches for investors. While the US has just imposed additional tariffs on goods from China, China itself has stated it will no longer purchase US-made Boeing products – certainly a blow to the US manufacturing industry.
Trump, who repeatedly said he was ready to talk to China, seems increasingly desperate, as rumours suggest China is also willing to engage – but only if it gets ‘respect’ from Trump, according to a Bloomberg report.
China has not officially contacted Trump but has reportedly requested a ‘point person’ – a sort of liaison – for talks.
Trump’s recent policy shift on semiconductors has caused further concerns for Nvidia and ASML, the world’s largest chipmaker and supplier of chip-making equipment, respectively. Nvidia’s share price fell another 6.87% yesterday, while ASML’s shares dropped by 5%. Major indices are also down across the globe.
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Crypto Assets and Gold Are Holding Up – for Now
Meanwhile, the crypto market is holding up pretty well at present, with Bitcoin up 1% over the past 24 hours, while Ethereum dropped slightly by 0.44% and XRP by 0.57%, respectively.
The total crypto market cap is US$2.65 trillion (AU$4.16 trillion), an increase of 0.66% in the past 24 hours, while the Fear and Greed Index remains firmly in Fear territory.
And not to forget gold, which has done particularly well:
While this is good news for crypto (and gold) holders, it doesn’t mean we’re out of the woods yet. Analysts at Glassnode wrote in a recent note that the broader “macroeconomic environment remains uncertain with the restructuring of global trade relations ongoing”.
With this volatility, Bitcoin has of course also had its share of ups and downs – but there is reason to be optimistic.
Matt Hougan, Chief Investment Officer (CIO) at Bitwise, said the recent drawdowns have been much less pronounced than in the past – which could indicate that Bitcoin at least is maturing as an asset.
Glassnode analysts agreed with Hougan, saying although the recent lows are the largest pullback this cycle, the fact that they stay within “typical bounds of previous corrections during bull markets” and are “an order of magnitude lower than previous iterations”, shows BTC has a “more resilient demand profile”.
Related: Italian Finance Minister Warns: Trump’s Crypto Policy ‘Dangerous’
Can Bitcoin Still Reach US$200k, Or Will it Go Straight to Zero?
And though many new investors may be experiencing losses, crypto veterans are still profitable.
Investors are under considerable stress, currently facing the largest unrealized losses on record. However, the bulk of these losses are concentrated among newer market participants, while Long-Term Holders remain broadly in profit.
GlassnodeDespite the volatility, several analysts believe we will soon see more liquidity entering markets, potentially as a response by the US Fed to a recession. Not everyone believes it will happen, but targets for a US200k Bitcoin by the end of the year are still circulating.
That is – of course – if Peter Schiff and the like are wrong, and it’s not all heading to zero. After all, he was right about gold, wasn’t he:
Related: US Court OKs Pause in SEC v. Ripple Tit-for-Tat Appeal Cases: Is it Finally Over?
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