Global markets are reeling after China hit the U.S. with a 34% tariff, jolting Wall Street and the crypto sector. Bitcoin, which had been rebounding and recently surpassed $84K, faced renewed pressure as Nasdaq futures declined further.
Despite sliding from $84,600 to $83,000, Bitcoin’s drop wasn’t as steep as anticipated—largely because the uncertainty that once loomed has now materialized, and markets tend to react more intensely to unknowns than to confirmed events.
Since Trump assumed office on January 20, growing concerns over tariffs and a potential global trade war have unsettled markets, significantly denting investor confidence. This wave of fear-induced selling dragged Bitcoin down from its all-time high of over $109,000 to below $80,000 last month.
Additionally, U.S. investors withdrew $10.85 billion from equity funds in the week ending April 2, worried that Trump’s trade tariffs might increase costs, squeeze profits, and push the economy toward a recession—a stark contrast to the $22.89 billion in inflows just a week earlier.
Could Trump’s Tariffs Actually Benefit Crypto?
This week, Trump imposed sweeping tariffs on 180 countries, with China, the EU, and Southeast Asia bearing the brunt. U.S. tariff levels have now surpassed the 20% mark set by the 1930s Smoot-Hawley Act.
Despite the chaos, this so-called “tariffageddon” could mark the end of uncertainty and potentially restore investor confidence. Following the announcement, global bond yields declined—hinting that inflation may cool off. This challenges the widespread fear that tariffs would spark stagflation, where rising prices and sluggish growth would force the Fed to maintain high interest rates.
U.S. 10-year bond yields have dipped below 4% for the first time since October, with significant declines also seen in the U.K., Germany, and Japan.
This shift has fueled optimism around potential Fed rate cuts, providing a lift to riskier assets like cryptocurrencies. The upcoming jobs report on Friday could influence sentiment either way—a strong report may boost confidence, while a weaker one could reinforce expectations for rate cuts, especially since it won’t yet account for the impact of Trump’s new tariffs.
The Impact of Global Market Correlation
According to the crypto community, Bitcoin’s decline isn’t due to its own fundamentals but rather its growing correlation with global markets. As broader economic pressures weigh on financial markets, crypto is also feeling the effects of this volatility. Still, once global conditions stabilize, Bitcoin is expected to rebound quickly—and possibly stronger than before.
Looking on the Bright Side
Despite recent market turbulence, the crypto space is refocusing on positive developments. Circle is pushing ahead with its USDC IPO, while Coinbase Derivatives has filed with the CFTC to self-certify XRP futures. Meanwhile, Ethereum’s highly anticipated Pectra upgrade is scheduled for launch on May 7, marking a major milestone.
Additionally, the SEC has acknowledged Fidelity’s application for a spot SOL ETF, bringing it one step closer to approval. With major moves unfolding across the industry, there’s plenty to keep an eye on.








