Bitcoin Hits ATH Amid US Tariffs and Bond Yields Spike
US President Trump announced a 35% tariff on Canadian imports and plans for 15–20% levies on other trading partners. The Dow Jones and S&P 500 slid, while the Nasdaq held steady. In the bond market, the 10-year Treasury yield climbed past 4.40%, amid rising fiscal deficits. Fed Chair Jerome Powell’s unexpected departure fuelled monetary policy uncertainty. Stock market volatility collapsed, with the VIX dropping to 15.7.
Despite macro headwinds, Bitcoin jumped over 4% to a new all-time high of $118,856, marking its third record in as many days. Major altcoins including Ethereum, XRP, Dogecoin and Cardano also rallied, posting double-digit gains. Crypto traders view the strong Bitcoin rally amid US trade tensions and yield spikes as a bullish signal.
Bullish
The news combines heightened US trade tensions, rising bond yields, collapsing volatility, and Fed chair uncertainty – all classic triggers for safe-haven flows. Despite these macro headwinds causing equity market declines, Bitcoin’s rally to fresh record highs signals strong risk appetite among crypto traders. The rally, accompanied by double-digit gains in major altcoins, underscores robust bullish sentiment. In the short term, Bitcoin is likely to maintain upside momentum as investors seek alternatives amid policy uncertainty. Over the longer term, persistent trade tensions and fiscal pressures may continue to drive demand for crypto as a haven, supporting prices further.