Crypto markets continue to reel after the White House confirmed a sweeping new trade move that sent shockwaves through global finance. On Tuesday, April 8, President Donald Trump’s administration announced a 104% tariff on all Chinese imports — set to take effect at 12:01 AM ET on April 9.
Shortly after the announcement, Bitcoin (BTC) fell to a daily low of $76,508, while Ethereum (ETH) bottomed out at $1,454, according to TheCoinInfo price tracking data.
Markets interpreted the tariff escalation as a sign of deeper global economic instability, sparking a sharp sell-off in both equities and risk assets — with crypto caught in the crossfire.
Trump’s Ultimatum and China’s Silence
The aggressive hike follows China’s failure to respond to an April 8 deadline issued by President Trump. The U.S. leader had warned Beijing that unless it revoked its 34% retaliatory tariff on U.S. goods, he would impose an additional 50% tariff hike.
China did not yield. The result? A full tariff rate of 104% on all Chinese imports — the highest in modern history.
Analysts Warn of “Worst Case Scenario”
Market analysts were quick to weigh in. Aurelie Barthere, an analyst at Nansen, called the escalation a “worst-case scenario” for risk assets.
“Escalating tariffs hurt economic growth in every country,” Barthere explained. “This is a global growth shock.”
Crypto, often seen as a speculative bet on future tech and finance, is especially vulnerable to slowing growth. Risk assets like Bitcoin and Ethereum are fueled by investor confidence in macroeconomic expansion — and higher tariffs challenge that outlook.
Not Everyone is Bearish: Hayes Sees a BTC Boost
Despite the bearish consensus, some in the industry believe the tariff war could eventually benefit Bitcoin.
Arthur Hayes, co-founder of BitMEX, argued that rising tariffs and yuan inflation could drive Chinese investors toward Bitcoin as a safe haven — a move seen during prior rounds of trade tensions.
“Trade wars put pressure on fiat currencies like the yuan,” Hayes said. “And when that happens, Bitcoin becomes more attractive.”
He added that rising inflation and capital restrictions could push more Chinese citizens to seek decentralized assets like BTC.
Will Tariffs Stick?
The future of the White House’s tariff stance remains uncertain. On Polymarket, a prediction platform, the odds of Trump reducing a majority of the tariffs by July dropped from 64% to 50% in a single day, reflecting growing doubt among traders.
While crypto investors brace for more volatility, the long-term impact of the tariff war could set the stage for a shift in Bitcoin’s role — from speculative tech asset to geopolitical hedge.
