China’s Retaliatory Tariffs Shake Global Markets
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Global markets are on edge as China slams the U.S. with a 34% tariff, sending shockwaves through Wall Street and crypto. Bitcoin, which had recently shown signs of recovery, climbing above $84K, took a hit as Nasdaq futures plunged further.
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Bitcoin slipped from $84,600 to $83,000, however the drop isn’t as sharp as expected. That’s because the market’s biggest fears are now out in the open as uncertainty often causes more stress than the actual event itself.
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Since Trump took office on January 20, fears of tariffs and a global trade war have rattled markets, leading a massive drop in investor confidence. This fear-driven sell-off dragged Bitcoin down from its record high of over $109,000 to under $80,000 last month.
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Besides, U.S. investors pulled $10.85 billion from equity funds in the week ending April 2, over concerns that Trump's trade tariffs could raise costs, hurt profits, and trigger a recession. This was a big drop from the $22.89 billion they invested the week before.
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The crypto community notes that the real issue is not Bitcoin’s fundamentals, but it’s the global market correlation dragging crypto down. As markets face broader economic challenges, crypto isn’t immune to the broader market volatility. However, once global issues ease, Bitcoin is poised to bounce back faster than ever.
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