Market Sell-Off Deepens: Bitcoin Dips Below $80K, Nasdaq Drops 5% on Escalating China Tariffs

Bitcoin Slides Below $80K as Trade War Heats Up, Nasdaq Drops Sharply and Gold Hits Record High

Markets were jolted back into risk-off mode on Thursday as rising tensions between the U.S. and China rekindled investor fears, sending major indices and crypto assets lower while gold surged to new highs.

Bitcoin (BTC), which had rallied more than 8% on Wednesday, gave back most of those gains, falling 4% to below $80,000. The decline mirrored a renewed downturn in equities, with the Nasdaq sinking 5.5%, reversing much of its prior day’s sharp rebound.

Crypto stocks bore the brunt of the risk sell-off:

• MicroStrategy (MSTR) dropped 11.2%
• Coinbase (COIN) slid 8.1%
• Marathon Digital (MARA) declined 9.3%

A social media post alleging a White House insider had confirmed a total tariff rate of 145% on Chinese imports — not the 125% figure previously stated by President Trump — rattled markets. The increase accounts for:

• A jump in “reciprocal” tariffs from 84% to 125%
• An added 20% tariff on fentanyl-related products

China responded swiftly, announcing it would scale back imports of American films — a move seen as both symbolic and strategic, signaling rising hostilities.

As risk assets fell, investors rushed to safe havens. Gold surged 3%, setting a fresh record high of $3,168, while the U.S. Dollar Index (DXY) dipped below 101, undoing its entire November rally and now off 9% from its January peak.

“This is a highly reactive market driven by geopolitical headlines,” said Kirill Kretov of CoinPanel.
“Tariff policy is now a dominant macro risk. If escalation continues, it could not only impact inflation but also pressure the Fed to recalibrate its rate trajectory.”

With uncertainty surrounding U.S. trade policy and the Fed’s next steps, markets remain fragile and on high alert for further developments.