Bitcoin & Ethereum Prices React to Rising Trade Tensions
A major economic shockwave hit today as the United States officially imposed a massive 104% tariff on Chinese imports, sending ripples through both traditional markets and the crypto space. This bold move, announced on April 9, is an escalation in the ongoing U.S.-China trade war—initially triggered by the Trump administration and now back in full force.
With no sign of compromise from Beijing, Washington raised tariffs in three waves: a 20% hike in March, a 34% increase last week, and now an additional 50%. These combined actions, taken under Section 301 of the U.S. Trade Act, aim to penalize what the U.S. describes as China’s unfair trade practices and subsidies.
Trade War: The Breakdown
Former President Donald Trump re-entered the spotlight, stating that all further trade negotiations with China will be suspended, with his administration seeking partnerships elsewhere. In retaliation, China has slapped a 34% reciprocal tariff on U.S. goods (effective April 10), while also restricting exports of key rare earth minerals such as yttrium, scandium, and terbium—materials critical to electric vehicles and tech manufacturing.
Crypto Market Feels the Heat
The escalation of this geopolitical clash has already impacted Bitcoin and Ethereum, as global investors react to the growing economic uncertainty.
- Bitcoin (BTC) dropped to a low of $74,647, a 4.71% dip, before bouncing slightly to $76,366.
- Ethereum (ETH) took a heavier hit, falling nearly 10% to $1,396, and currently trading at $1,438.
With market anxiety climbing, risk-on assets like crypto are facing a sell-off, as investors temporarily seek safety in cash or more stable instruments.
But that’s not all—China’s restrictions on rare earth materials may also drive up costs for crypto mining equipment. These metals are essential components in semiconductors and GPUs used by mining rigs. If supply chains tighten, mining profitability could take a hit, especially in countries like the U.S. that rely heavily on imported components.
Could Crypto Benefit in the Long Run?
Some analysts believe this short-term dip might pave the way for a long-term crypto rebound. If tariffs push inflation higher, investors may increasingly view Bitcoin as a hedge against fiat currency devaluation, similar to gold. The potential for mining slowdowns due to hardware cost increases could also impact Bitcoin’s hash rate, adding another dynamic to its price behavior.
Traditional Markets Are Already Shaking
Global stock markets are already showing signs of distress:
- S&P 500 has dropped 20% since February highs
- Dow Jones is down more than 17%
- Nasdaq officially entered bear market territory
- Hang Seng Tech Index lost 27% in just one month
- The Chinese Yuan has weakened to its lowest level since January
These figures paint a clear picture—global investors are bracing for more volatility, and crypto is no exception.
Final Thoughts: What’s Next for Crypto?
The U.S.-China trade war is back in full swing, and this 104% tariff could be just the beginning of another round of economic uncertainty. For crypto traders, this means heightened volatility, rapid shifts in sentiment, and potential changes in mining dynamics.
Whether you’re holding Bitcoin, Ethereum, or altcoins, staying informed and prepared is key. As history has shown, crypto markets often move fast in response to global events—and in times of macroeconomic chaos, they may just offer the safe harbor some investors are looking for.
Also Read:
- Missed the Mind Airdrop? It’s Been Extended—See the New Deadline!
- Notcoin Listing Battle: MEXC at 8%, Binance Confirms 60% – Which Exchange Is Next?
- White House Refutes Claims of Trump Tariff Delay: Labels Report as False
- ASIC Shuts Down 95 Scam Crypto and Romance Firms After Major Legal Victory
- Fartcoin Surges 30% Amid Recovery from 2025’s Worst Financial Crash