Risk sentiment deteriorated significantly during the European trading hours on Friday following China’s announcement of retaliatory tariffs on all goods. This response came in direct reaction to President Trump’s decision earlier in the week to elevate the overall levy on Chinese imports to an unprecedented 54%.
In the cryptocurrency market, Bitcoin, the leading digital currency by market capitalization, experienced a notable decline, dropping by $1,600 to settle at $83,000. This downturn erased an earlier rise that peaked at $84,600, as reported by CoinDesk. Other prominent digital assets, including XRP, ETH, SOL, and DOGE, similarly reversed their early gains, ultimately trading largely flat throughout the day.
Simultaneously, stock futures associated with the S&P 500 and Nasdaq saw significant declines, falling over 2% as investors reacted to the escalating global trade tensions. The uncertainty generated from these developments raised concerns about the broader impact on the economy.
As ForexLive analyst Justin Low highlighted in a recent market update, “China’s response is not only negative for the U.S. but it is also impacting the global outlook.” The ramifications of these trade disputes are becoming increasingly apparent, with market participants bracing for what could be turbulent times ahead.
