Trump’s Tariff Threats Tank S&P 500: Crypto’s Next Big Move?

S&P 500 ends 9-day win streak as Trump’s tariff threats spark fear. Will Bitcoin soar as a safe haven? Dive into the chaos!

May 6, 2025 - 00:54
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Trump’s Tariff Threats Tank S&P 500: Crypto’s Next Big Move?
S&P 500 Stumbles: Trump’s Tariffs Shake Markets
On May 6, 2025, the S&P 500 fell 0.64% to 5,650.38, snapping a nine-day winning streak—its longest since 2004—after President Trump’s renewed tariff threats rattled investors, per Reuters. The Dow dropped 0.24%, and Nasdaq slid 0.74%, reflecting unease ahead of the Federal Reserve’s May 6-7 meeting. Bitcoin, holding near $94,000, showed resilience, hinting at its safe-haven potential amid stock market jitters.
What’s Happening?
Trump’s April 2 tariff announcements triggered a 15% S&P 500 plunge, but markets rebounded with a 10% gain over nine sessions, fueled by hopes of U.S.-China trade talks, per CNN Business. Monday’s dip followed Treasury Secretary Scott Bessent’s claim that Trump’s tariff and deregulation agenda would drive long-term U.S. investment. Yet, fears of economic damage from prolonged tariffs, coupled with a 2% drop in energy stocks after OPEC+ output hikes, soured sentiment. Posts on X, like
@TMResearch2025
, noted markets shrugging off earlier “tariff apocalypse” fears, but volatility persists.
Why It Matters
For new investors, this shows how global trade policies can sway markets. Tariffs could raise U.S. consumer prices, slowing growth, while a weaker dollar (down 3% in 2025, per Bloomberg) may push investors toward Bitcoin, which outperformed stocks during April’s sell-off, per Cointelegraph. However, crypto’s volatility—BTC fell 12% in Q1—means risks remain. The Fed’s next moves could amplify or ease these pressures, with a 98% chance of steady rates, per CME’s FedWatch.
What’s Next?
The Fed’s decision and Trump’s trade rhetoric will shape markets. A tariff escalation could drive Bitcoin past $100,000, as seen in January, per Forbes. Diversify with stablecoins or ETFs to hedge uncertainty.
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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.