Fear Grips Crypto Market as US-China Trade War Escalates
The post Fear Grips Crypto Market as US-China Trade War Escalates appeared on BitcoinEthereumNews.com.
US imposes reported 104% tariff hike on Chinese goods, escalating trade war Crypto markets fall amid risk-off sentiment; Fear & Greed Index hits ‘Extreme Fear’ Context: Immediate crypto sell-off contrasts with uncertain future capital flight theory The trade war between the United States and China has ratcheted up sharply Tuesday, as the White House announced a steep tariff increase on Chinese imports. Reportedly involving a 104% hike on certain goods, the new tariffs took effect April 9, 2025, marking a serious escalation of trade tensions. In response to the U.S. announcement, China had imposed a 34% tariff increase on American goods. With Beijing failing to reverse its position, the U.S. decided to move forward with the additional 104% tariff, further deepening the trade rift. While the new tariff is a heavy blow to China, the full financial fallout remains unclear. Related: ‘Ignore China At Your Peril’: Ben Zhou Flags Yuan Devaluation’s BTC Impact Markets React: Crypto Sees Red Financial markets, including cryptocurrencies, reacted negatively across the board. The total market cap of the crypto sector dropped to $2.44 trillion, marking a 2.84% decrease over the last 24 hours. Bitcoin (BTC) is currently priced at $75,773, down by 3.40% in the past 24 hours. Ethereum (ETH) has also seen a drop, now priced at $1,458.22, a decline of 7.53%. XRP is trading at $1.80, losing 3.04% of its value in the same period. Related: US Department of Justice Dissolves Its Crypto Enforcement Team NCET Other altcoins like BNB, Solana (SOL), and Dogecoin (DOGE) also posted declines. The Fear & Greed Index registered 15, indicating “Extreme Fear” gripping the market. This suggests many investors are seeking safer ground amid the rising global economic uncertainty driven by the escalating U.S.-China tensions. Could Capital Still Flow to Crypto? Despite the recent downturn, some analysts…
Filed under: News - @ April 9, 2025 5:27 pm