China has announced an additional 34% tariff on U.S. goods recently as a direct response to the recent tariff imposed by U.S. on Chinese import, effective from April 10. This development has sparked a sense of fear within the crypto community as this is a significant increase in trade tariffs between two of the greatest economies in the world, which has led to a significant dip in price of Bitcoin.
Bitcoin Price Falls
The cryptocurrency market was already experiencing a downturn but surprisingly did well yesterday April 03, 2025. However, with this current development there are high chances of a greater dip in the market resulting into a significant market crash.
As of now, the cryptocurrency market is experiencing a decline of 2.5% in market capitalization in the last 24 hours. Bitcoin currently stands at $81,915.88 with a dip of 1.4% in the last 24 hours and 2.4% in the past hour as per CoinGecko.
Trade Tension Affect Crypto Market
These trade tensions between the U.S. and China have always had a global implication, affecting not only the trade between these two but this has also affected the financial markets world wide.
It all started with Trump announcing a 10% tariff on Chinese imports on February 1, he then halted the de minimis exemption, and raised tariff on steel and aluminium. China then fought back and raised tariffs for the U.S. on goods like coal and agricultural products.
Tariffs on Chinese goods were further increased to 20% by Trump and then further to 54% with reciprocal tariffs, finally a universal tariff of 10% was announced.
While all this was going on, the crypto community was riding on a roller coaster as the prices of the token kept on fluctuating. Back in February 2025, the cryptocurrency market faced a liquidation of approximately $2 billion due to this trade tension. The fear and greed index had dropped down to 10 during this period indicating a strong sense of fear within the community.
On March 11, 2025, Bitcoin even experienced a low point when the price of the token dipped below the $80,000 mark and the Bitcoin price dipped down to $78,783 as per CoinGecko.
Investors Remain Cautious
With the recent development it seems that the trade relations between the U.S. and China may continue to deteriorate, meanwhile, crypto investors understand that this tension could have a great impact on the crypto market and hence they would adopt a cautious approach moving forward.
The ongoing trade conflicts indicates the direct co-relation nature of global economic changes and market fluctuations in the crypto currency market. In the coming weeks, market watchers will closely monitor both the trade situation and cryptocurrency markets for signs of stabilizing or further decline.
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