Trump's Trade Agenda Sparks 1.1% Bitcoin Gain, 0.2% Ethereum Drop

U.S. President Donald Trump is scheduled to unveil his highly anticipated “Liberation Day” trade agenda at 4 p.m. ET, an event that has caused significant fluctuations in both the Bitcoin and stock markets. The announcement, to be made in the White House Rose Garden, has raised questions about which imported goods and nations will be most impacted by the forthcoming tariffs.

Bitcoin, the leading cryptocurrency globally, has shown relative stability ahead of the announcement, with its price increasing by 1.1% and nearing $85,000. Ethereum, the second-largest cryptocurrency, has experienced a minor decline of 0.2% over the past day. The correlation between Bitcoin and U.S. equities stands at 0.74, indicating that both markets are moving in sync. This strong relationship implies that any substantial movements in the stock market could directly influence Bitcoin's price.

The uncertainty surrounding Trump's trade agenda has led institutional investors to reduce their risk exposure. According to a lead analyst, the looming threat of a global trade war is causing capital to shift out of Bitcoin and into safer assets like gold. This strategic shift highlights the market's caution in the face of potential economic instability.

The broader question is how long Trump's tariff campaign will last and whether struggling markets will force the president to alter his approach. Some analysts predict that the president may need to reverse his stance within the next 6 to 12 months due to the potential disruption of global supply chains and increased prices for U.S. consumers. Early signs of market strain are already evident, and a reversal of the tariff policy is seen as almost inevitable to restore market stability and provide consumer relief.

The upcoming March employment numbers, set to be released on Friday, will offer further insights into the economic landscape. While the jobs report exceeded estimates in February, the unemployment rate rose to 3.9%, adding to the overall uncertainty. The market's reaction to Trump's “Liberation Day” announcement will be closely monitored, as it could set the tone for future economic policies and their impact on both traditional and digital assets.