The trade tensions between the US and China are causing ripples not only in global markets but also in the cryptocurrency sector. The US plans to implement a staggering 104% tariff on Chinese products starting April 9, which is likely to introduce further uncertainty in international trade. On the other hand, China has stated that it does not intend to lift its current 34% tariff.
US-China Trade Policies
The tariff implementation announced by US officials can be summarized as an addition to previously imposed tariffs. Donald Trump has kept his word and activated the additional 104% tariff today.
China argues that in this trade war, the US is more vulnerable, especially as its local currency faces devaluation. Trump insists that “they have to come to terms with us,” while China remains resolute and states it will not back down. In response to the US tariffs rising to 104%, China might raise its own tariff to 84%, and the US could impose an additional 50% tax. This cyclical retaliation raises concerns as trade may effectively come to a standstill in many sectors.
Crypto Market and Price Reactions
Following the tariff news, sudden declines were observed in the cryptocurrency market. Bitcoin’s price fell below $77,000, leading to approximately $50 million in liquidations within a short period. Long positions reported a loss of $40 million.
Crypto analyst Mikybull Crypto noted that the market has signaled a selling trend, which could lead to more pronounced declines. He pointed out that similar developments occurred in 2018 and 2022.
Mikybull Crypto: A selling signal has been observed in the market; a recession may occur.
Another analyst, Rekt Capital, suggested that Bitcoin’s price might fall to around $70,000. Technical analyses indicate that due to the decline in the RSI indicator, Bitcoin 
$91,081 could drop by 8.44% from its original low point.
Rekt Capital: Bitcoin’s price may drop by 8.44% from its original low.
The volatility experienced by the crypto market reflects the increased risks associated with the uncertain course of global trade. Ethereum 
$3,094 and other cryptocurrencies are similarly assessed to be at risk of decline.
The prevailing global uncertainty indicates that market participants may need to reassess their strategies; market dynamics may reflect the impacts of tightening international trade policies.
