According to The Kobeissi Letter, the S&P 500 turned negative after President Trump proposed imposing 80% tariffs on Chinese goods. China has issued a strong rebuttal, stating its firm opposition to the US's use of reciprocal tariffs. The announcement signals that significant trade barriers could persist long-term, raising concerns about global market volatility. For crypto traders, heightened uncertainty in traditional markets often drives increased interest and volatility in digital assets as investors seek hedges and alternative opportunities. Source: The Kobeissi Letter (@KobeissiLetter, May 9, 2025).

According to Stock Talk (@stocktalkweekly), President Trump indicated that U.S.-China tariffs could be lowered if upcoming talks in Switzerland are successful, noting that current tariffs are capped at 145% and suggesting a downward adjustment is possible (Source: Stock Talk, May 8, 2025). For cryptocurrency traders, easing trade tensions may boost global market sentiment, increase risk appetite, and potentially drive inflows into digital assets as investors seek diversified opportunities in a more stable macro environment.