100 Days In: Trump’s ‘Strategic Uncertainty’ on Tariffs Leaves Markets Guessing

Bitcoin fell below $80,000 on Monday, dropping to $77,459 before recovering slightly to $79,085, marking a 14% decline over the past week. The sell-off coincides with broader market declines and comes after four consecutive weeks of institutional investors reducing crypto exposure, with $4.75 billion in outflows from digital asset funds. Market sentiment has turned bearish, with the Crypto Fear & Greed Index at 17, while economic uncertainty has increased due to President Trump’s tariff policies and his recent comments about a possible “period of transition” for the economy.

The US economy has rapidly shifted from optimism to recession fears in just 20 days. Despite recent all-time stock market highs and solid economic growth, market volatility has increased significantly following President Trump’s announcement of new tariffs, including a planned 50% tariff on Canadian steel and aluminum imports. While economists note the actual risk of imminent recession remains low, uncertainty surrounding Trump’s economic policies—particularly his tariff plans—is creating what JPMorgan strategist David Kelly calls an “uncertainty tax” that’s making businesses hesitant to invest and consumers cautious about spending.

President Trump’s aggressive tariff policies have triggered a major stock market selloff, wiping out $4 trillion from the S&P 500’s value since its February 19 peak. The S&P 500 has fallen 8.6% from its record high and is approaching correction territory (10% decline), while the Nasdaq has already confirmed a correction. Monday saw particularly steep declines, with the S&P 500 dropping 2.7% and the Nasdaq plunging 4%, its worst day since September 2022. Business leaders and investors are especially concerned about the uncertainty created by Trump’s unexpected tariffs against allies like Canada, Mexico, and Europe, with Delta Air Lines already