Dow Dips 250 Points as Trump’s Drug Price Order Tanks Healthcare—Crypto Stays Calm
Dow falls 250 points on Trump’s drug price order, but crypto holds steady at $100K. What’s next?
Markets are feeling the heat of Trump’s latest move. On May 13, 2025, the Dow Jones Industrial Average dropped 250 points, dragged down by a sharp decline in healthcare stocks after President Trump issued an executive order tying US drug prices to the lowest global rates, as reported by Al Jazeera. The order, aiming for 30–80% price cuts, hit companies like Pfizer and Merck hard, with shares tumbling 5–7%. Meanwhile, the S&P 500 rose 0.9%, and the Nasdaq climbed 1.6%, buoyed by Big Tech gains.
Why the split reaction? Trump’s order targets Medicare, which accounts for 30% of US drug spending, promising trillions in savings but raising fears of stifled innovation. Healthcare giant UnitedHealth plunged 10% after its CEO stepped down and the company suspended its 2025 outlook, heavily weighing on the Dow as its third-largest component. Yet, Bitcoin held steady at $100,771, shrugging off the equity turbulence after a recent 2.75% dip following the US-China tariff cut on May 12. Crypto’s resilience aligns with its recent outperformance—up 8.5% since March while the S&P 500 fell 5.3%, per Cointelegraph.
What does this mean for crypto? For new investors, this shows crypto’s growing decoupling from traditional markets. Bitcoin’s stability amid equity swings suggests it’s becoming a hedge against policy shocks, though risks remain—CryptoQuant’s CEO warned of $5B in “dark stablecoins” that could spark volatility. Trump’s pro-crypto stance, teased in his May 11 Truth Social post, might also bolster sentiment, especially with Coinbase joining the S&P 500 on May 13, replacing Discover Financial. However, healthcare policy shifts could indirectly hit crypto if economic uncertainty grows.
What should you do? Stay diversified. Crypto’s calm is encouraging, but global policy shifts can still ripple through markets. Research thoroughly and invest cautiously.
Will crypto keep its cool? Share your thoughts below and follow trafy.io for more updates!
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The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
