Trump's Tariffs Spark 25% Market Downturn, Bitcoin Surges 8%

On March 12, the US stock market experienced significant fluctuations due to President Trump’s repeated changes to Canadian tariff policies. Initially, the market saw gains, but a sharp downturn followed the announcement of a 25% tariff on Canadian steel and aluminum. Although subsequent news indicated a pause in the tariff implementation and intentions for renegotiation, the negative trend persisted. A brief respite came when Ukraine declared a 30-day ceasefire, which prompted a surge in large-cap tech stocks, briefly lifting the market before closing lower, with main indices ending in the red.

In contrast, the cryptocurrency market showed resilience. Bitcoin recovered from a low of $76,606, climbing above $83,000—a rise exceeding 8%. Ethereum also rebounded from $1,754 to $1,920, showcasing robust performance above 9%. This positivity led to a total cryptocurrency market capitalization of approximately $2.77 trillion, reflecting a 2.5% increase over 24 hours, suggesting improving market sentiment.

Meanwhile, the US Dollar Index saw a decrease of over 0.6%, with most of the trading day spent in negative territory. An optimistic outlook for global oil inventories contributed to a slight uptick in international oil prices. Additionally, concerns regarding US tariffs fostered a rise in safe-haven gold, with spot prices garnering over 0.9% growth. The persistent uncertainty regarding Trump’s tariff policy continues to weigh heavily on the market sentiment, influencing investors ahead of the highly awaited CPI report due at 8:30 PM tonight. This report may have substantial implications for market direction.

Bitcoin's rebound was significant, surging over 8% amidst a tumultuous market environment and growing uncertainty surrounding President Donald Trump's tariff policies. The cryptocurrency had previously dipped to a four-month low, falling below $77,000 before recovering slightly above $80,000 on Tuesday, March 11, 2025. This volatility in the crypto market was exacerbated by broader economic concerns, including the impact of Trump's additional tariffs on Canadian steel and aluminum, which sent shockwaves through global markets.

The Dow Jones Industrial Average fell sharply on Tuesday, reflecting the market's reaction to the new tariffs. This downturn in traditional