Daily Market Update: Trump’s Canada Tariff Threat Shakes Markets as Gold Hits Record High

TLDR

• Gold surged past $5,000 per ounce as investors seek protection against geopolitical risks and a weaker dollar
• Bitcoin remains stuck near $87,000 with older holders selling into rallies while newer buyers absorb losses
• On-chain data shows bitcoin holders selling at a loss for the first time since October 2023
• Trump threatened 100% tariffs on Canada over a trade deal with China that may violate USMCA terms
• Ethereum continues to underperform bitcoin as demand for higher-risk crypto assets stays weak

Gold reached a new record above $5,000 per ounce on Sunday as global investors moved money into the precious metal. The rally comes as geopolitical tensions rise and the US dollar weakens.

Bitcoin traded near $87,000 in early Hong Kong trading. The cryptocurrency has struggled to break higher despite gold’s strong performance.

CryptoQuant released a report showing bitcoin holders are now selling at a loss. This marks the first time since October 2023 that investors have taken losses on their positions.

The data shows older bitcoin buyers are exiting their positions. Newer holders are stepping in to buy but at lower prices. This pattern usually signals a market moving into a period of sideways trading.

Glassnode data reveals that bitcoin faces heavy supply pressure above $100,000. Every time the price rallies, sellers who bought at higher prices exit their positions. This creates a ceiling that prevents sustained upward movement.

The current price remains below the $98,000 level where many short-term holders purchased their bitcoin. These investors accumulated during the 2025 price highs and are now selling to break even or cut losses.

Trump Announces Tariff Threats Against Canada

President Trump posted on social media Saturday threatening 100% tariffs on Canada. The threat stems from Canada’s recent trade deal with China on electric vehicles.

Canada agreed to lower tariffs on Chinese electric vehicles. In exchange, China reduced import taxes on Canadian farm products. Trump claims this arrangement may violate the United States-Mexico-Canada free trade agreement.

Canadian Prime Minister Mark Carney responded Sunday saying his country is committed to USMCA. The trade agreement is scheduled for renegotiation this summer. Carney stated Canada would not pursue free trade deals with non-market economies.

US Treasury Secretary Scott Bessent criticized Carney’s position on Sunday. He accused the Canadian leader of doing an “about-face” after previously joining the US in imposing steel tariffs on China.

Crypto Market Shows Weak Participation

Futures volumes for bitcoin remain low across major exchanges. Leverage deployment has stayed subdued as traders avoid taking large positions.

Ethereum is performing worse than bitcoin. The second-largest cryptocurrency shows weak demand and little derivatives activity. Investors are not rotating money back into higher-risk crypto assets.

Polymarket traders are betting that gold will hold above $5,500 through mid-year. The same traders expect bitcoin to continue consolidating before any new rally begins.

Options markets reflect this cautious outlook. Traders are pricing gold’s strength as a lasting trend while betting against a quick bitcoin recovery.

Central banks continue buying gold at a sustained pace. This institutional demand provides support for higher prices. The weaker dollar also makes gold more attractive to international buyers.

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