Bitcoin outperforms global market after Donald Trump reiterates income tax will be replaced by tariffs

Bitcoin reversed overnight losses to post a 0.75% gain by early Monday, outperforming traditional risk assets as global markets adjusted to mixed signals on tariffs and central bank policy.

After falling 1.2% around 03:00 BST, Bitcoin staged a V-shaped recovery, finishing Asian hours above $93,000, with traders targeting $95,000 in the near term.

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.

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