TL;DR

The new 104% tariff hike imposed by the United States on Chinese products has intensified the trade conflict and triggered a sharp reaction across the markets.
Bitcoin fell to $77,400 and Ethereum to $1,480, while more than $1.5 billion was liquidated in a single day.
Analysts warn that the current geopolitical context, combined with market fragility and impulsive investor behavior, is driving abrupt price swings.

The trade conflict between the United States and China entered a new phase following the White House’s decision to implement a 104% tariff increase on Chinese imports. This measure has sent shockwaves through both traditional markets and digital assets.

The new tariffs came into effect on April 8 and respond to Beijing’s refusal to lift the 34% tariffs it had previously imposed. China’s Ministry of Commerce described the decision as a serious mistake and warned that it will not back down.

Bitcoin and Ethereum Fall Amid Economic Turmoil

The tariff hike triggered an immediate reaction in the markets, particularly in cryptocurrencies. Bitcoin (BTC) dropped from the $109,000 mark reached in January to $77,400, showing a daily decline of 2% and a weekly drop of 9%, erasing the rally that followed Donald Trump’s return to the presidency. Ethereum (ETH) also saw a sharp and sustained loss in value. It is currently trading at $1,480 per unit, with daily losses of 5.5%. Over the past year, it has lost nearly 60% of its value.

Crypto Market Performance

Among other major altcoins: XRP (XRP) is trading at $1.84 after a 3.9% drop. BNB (BNB) remains stable at $555 per unit, with virtually no variation. Solana (SOL) is selling for $105 after losing 2.2% of its value. Surprisingly, TRON (TRX) rose 1.75% and is trading at $0.2324 per unit. Lastly, Cardano (ADA) and Dogecoin (DOGE) are priced at $0.5735 and $0.1451, respectively, with losses of 1.4% and 2.55%.

Additionally, the crypto market experienced an unusual spike in volatility. On Monday alone, over $1.5 billion in positions were liquidated. More than 82,000 traders closed their positions, with Bitcoin and Ethereum accounting for the majority. At the same time, futures trading volume rose sharply, reflecting a shift in investor behavior. BTC and ETH saw volume increases of 64% and 58%, respectively, while XRP and SOL surpassed those figures.

Favorable Conditions for Sharp Swings

Analysts caution that the current global context is creating favorable conditions for abrupt market movements. Political tensions, persistent inflation, and the risk of recession are fueling chaos and instability. Some investors are turning to traditional safe-haven assets like gold, while others are taking advantage of lower prices to accumulate. Despite the fear, an extreme short-term drop is not expected, though neither is a sustained rally toward new highs.

Bitcoin and the broader crypto market continue to follow erratic patterns. Sharp 10% drops alternate with immediate rebounds, fueled by shallow market depth and impulsive decisions. Even traditional indexes are beginning to reflect this behavior. At this level of volatility, any external change could trigger disproportionate reactions. The market’s next steps will depend both on international politics and its capacity to absorb new tensions.

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Filed under: News - @ April 8, 2025 6:31 pm