Bitcoin drops 4% as Trump escalates China tariffs
Markets brace for recession
U.S. markets continued to slide as President Donald Trump followed through on his promise to raise tariffs on Chinese goods, prompting retaliatory measures from Beijing.
The White House confirmed to CNBC on April 8 that the U.S. will increase tariffs on China to as high as 104%. As a result, the Nasdaq dropped more than 2%, while the S&P 500 and Dow Jones Industrial Average fell over 1% each.
At the time of writing, the crypto market had dropped 3.8%, with Bitcoin down 3.6%, trading near $76,400.
BTC price dynamics for 24 hours. Source: CoinMarketCap
“Trump, who has been vocal in his support for crypto, claims the polarizing economic move will strengthen U.S. manufacturing and reduce dependence on foreign goods,” reported The Kobeissi Letter.
However, investors remain rattled, and analysts are warning that a recession is now inevitable due to aggressive tariff policy.
History repeating itself?
Some in the crypto community see a silver lining: growing volatility in traditional markets is pushing more investors toward digital assets.
Binance CEO Richard Teng acknowledged that the return of trade protectionism is injecting major volatility into global markets. While investors may be cautious in the short term, he believes interest in crypto will strengthen over time.
“Many long-term holders continue to see Bitcoin and other digital assets as resilient during times of economic stress and shifting political dynamics,” Teng wrote on X.
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Another potential upside is that a recession could push the Federal Reserve back toward easing monetary policy, which may result in more capital flowing into crypto markets.
As we wrote, Bitcoin clawed back 15% from its recent five-month low of $74,400, only to give up more than half of those gains almost immediately.
