Bitcoin Surges as Trump Doubles Down on Tariff-for-Tax Swap—Traders Flee to Crypto Safe Haven

Digital gold outshines traditional markets after Trump’s latest economic bombshell. The former president’s pledge to replace income tax with tariffs sends shockwaves through Wall Street—and Bitcoin bulls are feasting on the volatility.

Markets React: Crypto Eats Fiat’s Lunch

While traditional assets wobble under the specter of trade wars, BTC/USD rips past resistance levels. Another reminder that when politicians tinker with the monetary plumbing, capital flows where it’s treated best—no permission needed.

The Cynic’s Take:
Watch Goldman Sachs spin this as ’constructive uncertainty’ while quietly rebalancing their own treasury reserves into BTC futures. The more things change...

Across broader markets, a cross-asset squeeze followed initial risk-off sentiment triggered by weekend noise around U.S. tariff policy and President Trump’s Truth Social posts claiming that income tax will be replaced by tariff revenue.

European participants faded the panic by 05:30 BST, lifting equities, oil, and Bitcoin synchronously while gold lagged. Gold slipped another 0.8% to $3,292 per ounce as tentative easing in U.S.-China rhetoric unwound safe-haven flows.

Treasuries diverged from Chinese bonds, reflecting a miniature bear-steepener as traders bought Beijing and sold Washington. U.S. 10-year yields touched 4.25%, the highest since April 11, amid supply concerns before Wednesday’s auction slate and the upcoming Federal Reserve meeting.

Oil faded early gains to settle lower, with WTI at $63.26 per barrel as attention turned to a possible OPEC+ output adjustment on May 5. Traders referenced the IEA’s warning that supply growth could outpace demand by 0.7 million barrels per day.