$BTC

Bitcoin's Tsunami: Has it hit you?

As of April 9, 2025, Donald Trump’s tariffs on Chinese imports have sent shockwaves through crypto markets, with Bitcoin plunging from $88,000 to $75,000 in just days—a $13,000 nosedive . The tariffs, aimed at shielding U.S. industries, triggered investor panic, wiping $130 billion from crypto’s market cap as traders feared inflation and global trade fragmentation . Bitcoin’s sharp decline reflects its lingering correlation with equities during macroeconomic storms, despite its “digital gold” narrative .

Tariffs on Chinese ASIC hardware have spiked mining costs, threatening smaller operators. With Bitcoin’s hashrate already down 15% since March, fears grow of network centralization as only large miners survive . Meanwhile, geopolitical tensions are pushing miners to relocate from China to Texas or Kazakhstan, destabilizing Bitcoin’s decentralized ethos .

While Bitcoin’s fixed supply could position it as an inflation hedge, short-term volatility dominates. Analysts warn that prolonged tariffs might force the Fed to cut rates, weakening the dollar and boosting Bitcoin—but only if markets stabilize . For now, crypto remains a rollercoaster, caught between Trump’s trade wars and its own ambition to redefine finance .

Will Bitcoin rebound as a sanctuary asset, or succumb to global fragmentation? The stakes have never been higher.