Tariff Uncertainty and Dollar Strength Weigh on Risk Assets as Crypto Slides

Cryptocurrency markets are retreating as trade tensions and shifting monetary expectations reshape investor sentiment across asset classes. Bitcoin has slipped below $95,000 as proposed tariffs on major trading partners trigger a broader pullback in risk appetite, with institutional players reassessing their positioning amid macroeconomic uncertainty.

The U.S. dollar has strengthened to two-month highs, supported by expectations of higher interest rates and a bond market sell-off that has extended across multiple maturities. This currency strength typically pressures alternative assets like cryptocurrencies, which are priced in dollars globally. Meanwhile, traditional equity forecasts remain constructive despite the murky near-term outlook, with major banks projecting significant gains by year-end even as tariff threats create near-term volatility.

Energy and precious metals markets are showing mixed signals with no clear directional bias. Oil prices face headwinds from record positioning in certain trading strategies, while shipping route disruptions and export policy debates create offsetting pressures. The broader market environment suggests investors are rotating between risk-on and risk-off positioning as policymakers signal potentially hawkish stances on both trade and monetary policy.