The post China’s Retaliatory Tariffs Shake Global Markets, Bitcoin Dips To $82K appeared first on Coinpedia Fintech News
Global markets are on edge as China slams the U.S. with a 34% tariff, sending shockwaves through Wall Street and crypto. Bitcoin, which had recently shown signs of recovery, climbing above $84K, took a hit as Nasdaq futures plunged further.
Bitcoin slipped from $84,600 to $83,000, however the drop isn’t as sharp as expected. That’s because the market’s biggest fears are now out in the open as uncertainty often causes more stress than the actual event itself.
Since Trump took office on January 20, fears of tariffs and a global trade war have rattled markets, leading a massive drop in investor confidence. This fear-driven sell-off dragged Bitcoin down from its record high of over $109,000 to under $80,000 last month.
Tariff Tensions
This week, Trump hit 180 nations with massive tariffs, with China, the EU, and Southeast Asia facing the biggest hits. U.S. tariffs now exceed the 20% threshold set by the 1930s Smoot-Hawley Act.
However, this “tariffageddon” moment signals the end of market uncertainty and could actually boost investor confidence. After the tariffs, bond yields dropped globally, suggesting inflation might ease. This goes against the common belief that tariffs would cause stagflation, rising prices with slow growth and forcing the Fed to keep interest rates high.
The U.S. 10 year bond yields have dropped below 4% for the first time since October, and rates in the U.K., Germany, and Japan have also fallen sharply.
This raises hopes for Fed rate cuts and helps boost risky assets like crypto. Friday’s jobs report could either make people more hopeful if it’s strong or support rate cuts if it’s weak, since it won’t reflect Trump’s new tariffs.
Global Correlation Hitting Hard
The crypto community notes that the real issue is not Bitcoin’s fundamentals, but it’s the global market correlation dragging crypto down. As markets face broader economic challenges, crypto isn’t immune to the broader market volatility. However, once global issues ease, Bitcoin is poised to bounce back faster than ever.
The Brighter Side
As global economic uncertainties ease, the crypto market is shifting its focus back to promising developments. Circle’s USDC is moving forward with its IPO, and Coinbase Derivatives has filed with the CFTC to self-certify XRP futures. Plus, Ethereum’s Pectra upgrade is set to launch on May 7, marking a significant step forward.
Besides, The SEC has recognized Fidelity’s application for a spot ETF linked to SOL, moving it closer to approval. Big things are happening in crypto—stay tuned!
