• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

How China’s 34% tariff on US imports could impact the crypto market

by April 5, 2025
by April 5, 2025

On Friday, China’s Finance Ministry confirmed that it would impose a 34% tariff on all US imports, effective April 10.

The decision is a direct response to Trump’s earlier move to levy a similar 34% tariff on Chinese goods, which was part of a broader push for reciprocal trade agreements.

In its official statement, the Chinese government urged Washington to abandon its “unilateral measures” and engage in respectful dialogue to resolve the dispute.

The announcement sent shockwaves through global markets.

Analysts warn that the ripple effects could reach as far as the crypto market, despite its decentralized nature.

Bitcoin (BTC), which had briefly surged to $84,000, dropped sharply below $82,000 following the news, reflecting broader market anxiety.

The crypto market had already been under pressure after Trump’s tariff announcement earlier this week, and China’s move has only deepened the bearish sentiment.

Crypto market braces for volatility

Despite the initial dip, some analysts believe the cryptocurrency market may not suffer the same depth of losses as traditional financial markets.

According to crypto strategist Kevin Capital, digital assets like Bitcoin and Ethereum are only indirectly affected by tariffs, unlike traditional sectors represented by indices like the S&P 500.

Capital pointed out that current investor sentiment in crypto is being propped up by monetary policy expectations.

With markets now pricing in five potential interest rate cuts from the US Federal Reserve this year, there’s hope that liquidity support could offset macroeconomic shocks like trade tensions.

However, he also warned that optimism could quickly fade if Fed Chair Jerome Powell dismissed the idea of aggressive rate cuts.

“If Powell shuts the door on easing, crypto may eventually mirror the stock market’s steep declines,” Capital noted.

“But if he supports easing, eyes will shift to the CPI data due next week.”

Global markets reel as S&P 500 tumbles

Traditional financial markets have already taken a hit. The S&P 500 lost more than $1.5 trillion in market value as trading opened following China’s announcement.

Futures tied to the Dow Jones Industrial Average and Nasdaq also posted sharp declines, reflecting fears that the global economy may be heading toward a recession.

Meanwhile, European Commission President Ursula von der Leyen signaled that the EU is prepared to take countermeasures if trade talks with the US break down.

This further adds to the uncertainty hanging over the global economy and could increase volatility in both equity and crypto markets in the coming days.

Interestingly, Bitcoin rebounded slightly later in the day on the back of stronger-than-expected US job data, lending support to the theory that crypto markets are currently more sensitive to monetary policy cues than geopolitical tensions.

The post How China’s 34% tariff on US imports could impact the crypto market appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Why Wedbush’s Dan Ives thinks Trump’s latest tariffs could set US tech sector back a decade
next post
‘China played it wrong’: President Trump on tariff retaliation

Related Posts

Here’s why the top DAX Index stocks of...

June 26, 2025

Bayer share price is rising: does it have...

June 26, 2025

Highs today, higher tomorrow? UBS sees AI adoption...

June 26, 2025

Europe markets open: stocks mostly up; Shell denies...

June 26, 2025

Why are SPACs suddenly hot again and should...

June 26, 2025

Euro weakens as US Dollar strengthens, ECB dovish...

June 26, 2025

Australia, New Zealand top global rankings in per...

June 26, 2025

SMCI stock price analysis as Supermicro forms risky...

June 26, 2025

Eli Lilly seen as the stronger bet amid...

June 26, 2025

Nvidia’s $3.77 trillion surge lifts Asian chip stocks...

June 26, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Trump’s ‘Art of the Deal’ Politics Undermine America’s Future

    June 26, 2025
  • Teachers’ Unions Think They Own Your Kids 

    June 26, 2025
  • Central Bank Independence: More Heat than Light

    June 26, 2025
  • Central Bank Independence: More Heat than Light

    June 26, 2025
  • Trump’s “Art of the Deal” Politics Undermines America’s Future

    June 26, 2025
  • Teachers Unions Think They Own Your Kids 

    June 26, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,627)
  • Editor's Pick (168)
  • Investing (185)
  • Stock (1,052)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Why is NHS England being scrapped?

March 15, 2025

CRO price jumps 14% as Crypto.com seals...

April 23, 2025

Europe markets open: Stoxx 600 drops 1%,...

June 13, 2025