Catenaa, Thursday, April 10, 2025- China has announced a sharp increase in tariffs on US imports, raising them from 34% to 84% in a direct response to the US imposing 104% tariffs on Chinese goods earlier on April 9, 2025.
This sudden escalation in the trade war caused a ripple effect in global markets, leading to a significant drop in Bitcoin’s value, which fell below the critical $76,000 threshold.
The Chinese government’s decision to raise tariffs is seen as an effort to protect its domestic industries and level the playing field following US tariffs on Chinese goods. This retaliatory measure has caused considerable turmoil in both traditional and crypto markets, with investors growing increasingly concerned about a prolonged trade conflict.
Bitcoin and other cryptocurrencies had initially shown positive momentum, but as news of the tariffs spread, market sentiment turned negative. Bitcoin’s decline has underscored the market’s vulnerability to economic uncertainties.
According to analyst Mati Greenspan, risky cryptocurrencies have experienced severe losses, with Bitcoin down 30% from its peak.
The ongoing trade tensions between the US and China continue to exacerbate market volatility, with both the cryptocurrency and traditional asset markets reacting negatively to the uncertainty surrounding the global economy. Investors are now navigating an increasingly unstable economic landscape.
