Digital asset markets displayed relative stability on Thursday, April 17, even as traditional U.S. stocks presented a mixed picture, reacting to ongoing tariff discussions and significant macroeconomic developments.
The crypto market largely navigated the turbulence seen elsewhere, though investor caution prevailed. Early trading saw the Dow Jones Industrial Average stumble, dragged down by losses in major components like UnitedHealth, highlighting nervousness in established sectors.
Conversely, the S&P 500 and Nasdaq saw modest initial gains, partly lifted by positive earnings news from tech players like TSMC, which reported a substantial profit increase. However, this optimism proved fragile as broader market sentiment leaned bearish for risk-heavy assets throughout the session.
A significant geopolitical event unfolded as former President Donald Trump publicly criticized Federal Reserve Chair Jerome Powell, labeling him “late and wrong” regarding monetary policy. This critique followed Powell’s acknowledgement of the complex balance between managing inflation spurred by U.S. tariffs and stimulating economic growth.
Trump urged the Fed to lower interest rates, pointing to multiple rate reductions by the European Central Bank, which subsequently confirmed another 25-basis-point cut, adjusting its key rate to 2.25%. These calls for looser monetary policy add another layer of complexity for investors evaluating assets across the risk spectrum, including blockchain-based tokens.
Despite sharp sell-offs in equities earlier in the week, particularly affecting tech stocks like Nvidia, major indices like the Dow and S&P 500 were poised for weekly declines. The tech-focused Nasdaq faced an even steeper drop over the preceding five days.
Against this backdrop, Bitcoin (BTC) largely mirrored the cautious sentiment pervading risk assets, remaining relatively flat over the past 24 hours near the $84,500 mark. The broader cryptocurrency space continued to absorb cues from macroeconomic policy debates and traditional market performance as the trading week neared its conclusion.