U.S. Market Sees Sharp Reversal as Tariff Fears Return

On Thursday, April 10, U.S. markets fell sharply following a brief rally sparked by President Trump’s temporary 90-day tariff freeze on most countries. The Dow Jones closed down 2.5%, the S&P 500 dropped 3.46%, and the Nasdaq plummeted by 4.31%. Although futures ticked slightly higher, the mood across equities was overwhelmingly cautious.

Gold surged to $3,208/oz as investors moved toward safe-haven assets, while oil fell back to $60/barrel on demand concerns. The short-term optimism seen the previous day quickly evaporated as markets refocused on unresolved U.S.–China tensions.

Bitcoin Retraces Gains, Altcoins Follow Suit

Bitcoin corrected to around $79,000 after hitting highs in the $83,000 range. Most altcoins followed suit with modest losses. Total crypto market capitalization settled at $2.617 trillion. The correction appeared technical, driven more by global macro conditions than crypto-specific developments.

U.S.-listed spot Bitcoin ETFs recorded $149.5 million in outflows, signaling weakening investor confidence. ETH spot ETFs mirrored the trend with $38.8 million in outflows.

CPI Cools, but Markets Remain Uneasy

The March CPI report delivered better-than-expected numbers. Headline inflation declined by 0.1%, pushing the annual rate down to 2.4%—well below February’s 2.8% and Wall Street’s 2.6% forecast. Core CPI rose just 0.1%, registering 2.8% annually, the lowest since March 2021.

Energy and housing costs dropped, but food prices, especially eggs, remained elevated. Despite the soft CPI print, concerns remain over the inflationary risks of Trump’s tariff strategy. While the CME FedWatch Tool shows a 65.8% probability of a June rate cut, rising bond yields have added complexity.

Trade War Pressures Mount: Tariffs Reach 145%

White House officials confirmed that effective U.S. tariffs on Chinese imports have now reached 145%. Trade economist Erica York stated that this level essentially shuts down bilateral trade. Amazon CEO Andy Jassy warned that U.S. consumers will bear the brunt, as sellers are forced to pass on costs.

In response, China’s CPI fell by 0.1% in March, further stoking deflationary pressures. The yuan fell to its lowest level in 18 years. In contrast to U.S. inflation concerns, China now faces deepening economic stagnation.

Global Trade Alignments: Friends or Foes?

U.S.–Vietnam

Reuters confirmed that the U.S. and Vietnam will begin negotiations on a new bilateral trade agreement. Both sides expressed a desire to remove non-tariff barriers to boost bilateral trade.

Australia

Australia outright rejected China’s offer to jointly oppose U.S. tariffs. Prime Minister Anthony Albanese and the Defense Minister both emphasized that Australia will act independently and not side with China.

Europe

The EU opted to pause retaliatory tariffs against the U.S. for 90 days and is negotiating a broader trade deal. However, EU officials are demanding a $350 billion increase in American LNG imports as part of the rebalancing effort.

President Ursula von der Leyen warned that failure to reach a deal may expand the transatlantic trade war into digital services—threatening big tech players like Meta and Alphabet.

The EU and China also agreed to explore setting a price floor for Chinese EVs to avoid prolonged tariff disputes, a move supported by the German auto industry.

SEC Confirms Paul Atkins as Chairman

In a pivotal development for digital assets, the U.S. Senate confirmed Paul Atkins as the new Chairman of the SEC. A longtime advocate for crypto regulation clarity, Atkins emphasized the urgent need for a transparent legal framework.

He pledged to work closely with Congress to finalize comprehensive rules for digital asset markets, citing that unclear regulations stifle innovation and investor confidence. His appointment was broadly welcomed by the crypto community as a potential turning point for U.S. regulatory posture.

Insider Insights on Trump’s Tariff Chessboard

According to veteran journalist Charlie Gasparino, the 90-day pause on global tariffs was part of a larger strategy. The Trump administration had anticipated that most countries would seek negotiations—China being the exception. More than 75 countries have since made goodwill overtures, prompting Trump’s team to delay full implementation.

Gasparino also noted that the bond selloff following the tariff announcements may have forced the administration to adjust course. Rising yields threatened to derail fiscal stability as the U.S. faces over $9 trillion in refinancing this year. Some speculate that President Trump’s endgame includes removing Fed Chair Jerome Powell, blaming him for resisting rate cuts.

Crypto Policy and Market Updates

• OpenSea is lobbying the SEC to clarify that NFT platforms are not securities exchanges.
• Florida House committee passed a Bitcoin Reserve Bill (HB 487), now heading to full state vote.
• Serbian Prince Philip predicted BTC will hit $1 million, citing an imminent supply shock.
• Neptune, a top Canadian blockchain firm, now holds 401 BTC in reserves.
• Pakistan is considering allocating surplus energy for Bitcoin mining and AI data centers.
• South Korean banks are requesting looser regulations for crypto partnerships.
• WFP USA now accepts over 80 cryptocurrencies for donations, citing cost savings and efficiency.
• ShareRing, an Australian identity platform, will pilot blockchain-based age verification for social media under a $4 million federal contract.

Regulatory Clarity Meets Global Trade Disruption

As Paul Atkins assumes leadership at the SEC with a mandate to simplify digital asset regulation, the broader global economy remains under strain from U.S.–China trade frictions. Markets are likely to remain volatile until the effects of the 90-day tariff delay become clear. Whether the Fed will support Trump's economic agenda with rate cuts, and whether China’s stimulus measures will be effective, are critical variables shaping the months ahead.

The convergence of trade uncertainty, inflation volatility, and digital asset reforms marks a pivotal moment. For the crypto industry, however, the arrival of a regulatory-minded SEC Chair may offer hope for a more stable and innovation-friendly environment going forward.

Markets remain on edge. While CPI data offers hope for a rate cut in June, escalating tariffs and global bond selloffs are introducing new volatility. Meanwhile, the SEC’s leadership change may signal a new era for crypto regulation. The stage is set for a pivotal summer—with monetary policy, trade diplomacy, and crypto regulation all converging.

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Disclaimer:
This article is for informational purposes only and does not constitute financial or investment advice. Please consult a licensed advisor before making any investment decisions.