Crypto Chaos: Trump’s Tariff Tango Sends Bitcoin and Ethereum Spiraling!

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Ah, the world of cryptocurrency, where fortunes are made and lost faster than one can say “blockchain.” Today, we find ourselves in a rather amusing predicament: Bitcoin, Ethereum, and their merry band of altcoins have taken a nosedive, all thanks to a rather audacious tariff hike on China. Who knew that tariffs could be the new black? 😏

On that fateful Tuesday, April 8, the White House, in a fit of economic bravado, declared that tariffs on all goods from China would soar to a staggering 104%. Yes, you read that right—104%! Effective April 9, 12:01 AM, Eastern Time, because why not start the day with a little chaos? 🕛

In the wake of this announcement, Bitcoin (BTC) plummeted to a daily low of $76,508, while Ethereum (ETH) found itself languishing at $1,454. The market, it seems, is not fond of uncertainty, especially when it comes wrapped in a tariff bow. The fear of a global economic meltdown is palpable, and who can blame them? After all, nothing says “financial stability” like a trade war. 💥

The White House’s decision came after China, in a display of defiance, chose to ignore Donald Trump’s ultimatum. The president had threatened an additional 50% tariff hike if China did not rescind its own 34% retaliatory tariffs on U.S. goods. It’s like a game of economic chicken, and everyone is honking their horns. 🚗💨

What tariffs mean for Bitcoin and crypto

Now, let us turn our gaze to the analysts, those wise sages of the financial realm. Aurelie Barthere from Nansen has dubbed this escalation a “worst-case scenario” for risk assets, including our beloved crypto. According to her, these tariffs are akin to a global growth shock, which sounds rather dramatic, doesn’t it? 🌍💔

But fear not, dear reader! Not all is lost in the land of Bitcoin. Arthur Hayes, the co-founder of BitMEX, has a different take. He suggests that this trade war could actually be a blessing in disguise for Bitcoin. Imagine that! A trade war leading to inflationary pressures on the yuan, prompting Chinese investors to flock to Bitcoin like moths to a flame. It’s a scenario that has played out before, and who doesn’t love a good comeback story? 📈

As for the future of tariffs, well, it remains as clear as mud. On Polymarket, the odds of Trump reducing a majority of the tariffs by July have plummeted to 50%, down from a high of 64% on April 7. It’s a rollercoaster ride, and we’re all just along for the thrill. 🎢

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2025-04-08 21:26