Bitcoin and stock markets experienced a significant increase in value today following reports indicating that tariffs with China may be reduced, allegedly mentioned by Treasury Secretary Scott Bessent. This scenario has occurred twice within the past month, where rumors related to tariffs have driven market upswings.
Despite initial excitement in traditional financial markets, the enthusiasm faded as the White House did not confirm any pause in tariff actions, contrasting with Bitcoin's stable performance. This trend suggests a potential decoupling of Bitcoin from stock market movements, distancing from previous correlations.
The economic turbulence caused by Trump's tariff policies has significantly impacted the markets, with uncertainty being a major factor. Recent events, like false tariff pause rumors two weeks ago and an eventual official announcement, have led to market fluctuations.
A Bloomberg report mentioned Scott Bessent projecting a de-escalation in proposed tariffs with China, indicating a potential relief for global markets. This news quickly triggered a positive response in both Bitcoin and traditional stock values, with the Dow Jones, S&P 500, and Nasdaq experiencing notable rebounds.
Despite Bessent's supportive stance on cryptocurrencies and tariffs, his influence on changing Trump's decisions is limited. Following the initial optimism, traditional market indices began declining once more.
It is noteworthy that while two weeks ago, the stock market plunged after the White House dismissed rumors of a tariff pause, there has been no official response to Bessent's recent comments. Amidst market fluctuations, Bitcoin maintained stability above $91,000, and the overall cryptocurrency market cap reached $2.96 trillion.
The question arises whether Bitcoin can serve as a safe asset during economic downturns. Observing its performance alongside bullish and bearish macroeconomic indicators could provide insights into its behavior compared to traditional financial instruments. Investors are advised to monitor future tariff-related news for potential market impacts.