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Overview

Bitcoin has faced a drop to $83,000 from $84,600 after a series of tariffs imposed by China in retaliation against U.S. measures. The drop comes as the market reacts to escalated trade tensions initiated by President Donald Trump’s latest tariffs on international imports.

“Beijing stepped up trade tensions by announcing retaliatory tariffs following President Donald Trump’s decision to impose further levies on China and other nations.”
Translation: Beijing heightened trade tensions by revealing retaliatory tariffs following President Trump’s move to implement more levies on China and other countries.

With Trump’s announcement on expansive tariffs covering 180 nations, investor sentiment has shifted, and many crypto assets have retreated as fears of a prolonged trade war emerge. Since Trump’s presidency began, the markets have been in a tug-of-war over the impending threat of tariffs, resulting in substantial price fluctuations of cryptocurrencies like Bitcoin.

Recent taxation measures have seen the U.S. effective tariff rate skyrocket beyond levels established by the Smoot-Hawley Tariff Act of the 1930s, affecting investor confidence.

Notably, the markets might find liberation amid this tariff predicament, as the anticipation of previous fears dissipates with reduced bond yields across developed economies. In addition, a favorable jobs report could shift sentiments positively toward cryptocurrencies.

Upcoming Events

• Crypto:
  • April 5: The alleged birthday of Satoshi Nakamoto.
  • April 7: Syscoin activates the Nexus upgrade.
• Macro:
  • April 4: U.S. job statistics will be released.
  • April 4, 11:25 a.m.: Fed Chair Jerome H. Powell discusses “Economic Outlook.”
• Derivatives:
  • Currently, BTC and ETH options are trading at premiums suggesting near-term concerns over price drops.

Stay engaged with developments in the crypto market, and make sure to watch out for major news that could impact cryptocurrency prices.