Bitcoin Surpasses Global Markets Following Donald Trump’s Confirmation of Tax Replacement with Tariffs

Bitcoin bounced back from overnight declines to achieve a 0.75% increase by early Monday, surpassing traditional risk assets as global markets reacted to mixed signals regarding tariffs and central bank policies.

After experiencing a 1.2% drop around 03:00 BST, Bitcoin made a swift recovery, concluding Asian trading hours above $93,000, with traders aiming for a target of $95,000 soon.

In the broader market context, there was a cross-asset squeeze following initial risk-off sentiments prompted by weekend discussions concerning U.S. tariff policies and statements made by President Trump about substituting income tax with tariff revenue.

European investors calmed the jitters by 05:30 BST, leading to a simultaneous rise in equities, oil, and Bitcoin, while gold lagged behind. Gold fell another 0.8% to $3,292 per ounce as a tentative easing in U.S.-China tensions led to a decrease in safe-haven demand.

U.S. Treasuries moved differently from Chinese bonds, showing a minor bear-steepening trend as investors bought into Beijing bonds while selling Washington’s. U.S. 10-year yields reached 4.25%, the highest level since April 11, amid concerns over supply ahead of Wednesday’s auction and the upcoming Federal Reserve meeting.

Oil prices receded from early gains to settle lower, with WTI priced at $63.26 per barrel as focus shifted to a potential OPEC+ output adjustment expected on May 5. Traders noted the IEA’s warning that supply growth might exceed demand by 0.7 million barrels per day.