On April 9, the global financial system faced renewed pressure due to President Trump's introduction of new tariffs, significantly impacting both stock and cryptocurrency markets.
Impact of Trump's Tariffs on Global Markets
Just before Asian markets opened, the Trump administration imposed new tariffs affecting nearly every major trading partner. China was hit hardest with a historic 104% import tax, while other key economies like India, South Korea, and Japan also faced increases. Markets reacted immediately, with Japan's Nikkei 225 dropping over 3%, while the Dow Jones shed 320 points on Wall Street.
China's Response to Tariffs and Consequences
The Chinese government swiftly condemned the new tariffs, labeling U.S. actions as 'unilateral intimidation tactics'. The Foreign Ministry warned of 'resolute' responses if provoked further, signaling that without formal trade discussions, a quick resolution is unlikely. Analysts anticipate China may retaliate with its own tariffs or restrictions on U.S. goods.
State of the Crypto Market and Bitcoin's Future
The crypto market also reacted negatively, with Bitcoin dropping 6% to fall below $75,000 before slightly recovering to around $77,000. The total crypto market cap decreased by 5.8%, resulting in over $400 million in liquidations. Some analysts suggest accumulating opportunities in altcoins, hinted by the MVRV metric indicating mid-term buy zones.
Trump's new policies have marked a pivotal moment for global markets, causing challenges for both traditional assets and cryptocurrencies. As uncertainty looms with no clear end in sight, markets remain in a state of watchfulness.
