Dow Soars 1,100 Points on US-China Trade Deal, But Bitcoin Takes a $2K Hit
US-China tariff cuts spark a 1,100-point Dow rally, while Bitcoin falls $2K to $100K. Why the split?
Global markets are feeling the ripple effects. On May 12, 2025, the Dow Jones Industrial Average skyrocketed 1,100 points after the US and China agreed to slash tariffs for 90 days, dropping rates from 145% to 30% on Chinese goods, as reported by crypto.news. The S&P 500 jumped 3.25%, and the Nasdaq soared 4.34%, with tech giants like Tesla and Apple gaining 7% and 6%. Yet, Bitcoin (BTC) fell 2.75% to $100,771, down from a session high of $106,000, despite Trump’s earlier tease on Truth Social hinting at a market-moving announcement.
Why the disconnect? The tariff rollback, hailed by Trump as a “total reset,” fueled equity markets by easing trade war fears, boosting companies reliant on China. But Bitcoin’s drop reflects a “sell the news” reaction—traders cashed out after a month-long rally from $75,000, as broader markets like equities caught up. Gold also fell 3.6% to $3,220 per ounce, showing a shift from safe-haven assets. Posts on X echo this sentiment, with some users noting Bitcoin’s decline as the dollar strengthened, up 1.4%. However, CryptoQuant’s CEO recently warned of $5 billion in untracked “dark stablecoins,” which could add hidden volatility to crypto markets.
What’s the bigger picture? For new investors, this shows crypto’s sensitivity to macro events. The trade deal might spur long-term crypto growth if economic stability drives investment, but short-term dips are likely. Bitcoin’s fall aligns with its high-beta nature—often amplifying market moves. Meanwhile, the deal’s 90-day window leaves room for uncertainty; if talks falter, tariffs could spike again, as US Trade Rep Greer warned. This could reignite trade tensions, impacting both equities and crypto.
What should you do? Diversify and stay cautious. Bitcoin’s volatility isn’t new—research thoroughly and only invest what you can afford to lose. Keep an eye on trade talk outcomes.
Will Bitcoin rebound from this dip? Share your thoughts below and follow trafy.io for more updates!
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.
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.
