Bill Ackman Calls for 90-Day Tariff Pause Amid Market Turmoil, Bitcoin Drops 14%

Bill Ackman, a prominent hedge fund manager and supporter of President Donald Trump, has called for a 90-day pause on the administration's new tariffs, warning of potential severe economic consequences. This call comes as global financial markets, including cryptocurrencies, experience significant turmoil in response to Trump's announcement of sweeping new tariffs.

Bitcoin, the world's largest cryptocurrency by market capitalization, has tumbled to $77,300, erasing nearly $70 billion in market value over a 24-hour period. Ethereum, the second-largest cryptocurrency, has also seen a sharp decline, dropping 14% to $1,555. This downturn in the crypto market mirrors broader risk asset losses, as traditional markets also react to the tariff announcements.

President Trump's recent declaration includes a 25% tariff on all foreign-made automobiles, a 10% "minimum baseline tariff" on imports, and new "reciprocal tariffs" targeting countries with levies on American goods. The president justified these measures by stating that the U.S. has been "ripped off for more than 50 years" and that such practices would no longer be tolerated.

U.S. stock futures plunged on Sunday evening, with S&P 500 futures down nearly 6%, sparking fears of a disorderly market open on Monday. This market reaction highlights the widespread concern and uncertainty surrounding the new tariff policies. The cryptocurrency market, often seen as a barometer for risk appetite, has mirrored these losses, with Bitcoin briefly rallying to $87,800 during Trump’s tariff announcement before retreating sharply.

Bill Ackman's warning underscores the potential economic fallout from the tariffs. He argues that the current situation presents an "opportunity" for Trump to pause the tariffs for 90 days and negotiate, rather than rushing into a tariff regime that could lead to an "economic nuclear winter." Ackman believes that without a pause, the U.S. could face a severe economic downturn, including a halt in business investment, consumer spending, and damage to the country's reputation as a trading partner.

Ackman's concerns are echoed by many economists who question the administration's approach to tariffs. The formula being used—trade deficit divided by imports—has been criticized as overly simplistic and likely to backfire. As markets brace for Monday’s opening bell, investors across all asset classes continue to offload risk, adding to the sense of panic building in the markets.

For cryptocurrency investors, the current market turbulence raises questions about Bitcoin’s status as a safe haven asset, particularly in times of economic uncertainty and trade tensions. The market's volatility and the potential for further declines highlight the need for cautious investment strategies and a closer examination of the underlying factors driving these movements.