On April 2nd, US President Donald Trump announced bilateral tariffs with various countries, leading to market and Bitcoin decline. Despite tariff pressure, Bitcoin held at $82,000. In Asia, caution prevails as investors await Beijing's response to Trump's tariffs, while markets eye Bitcoin's Death Cross signal.
Trump's Tariffs and Market Reaction
Trump imposed a 34% tariff on Chinese goods, raising the total to 54%, the highest worldwide. Experts say China's response will impact global markets and cryptocurrencies. Robin Brooks, chief economist at the Institute of International Finance, noted that China's reaction will be critical. If China devalues the yuan in response, it could trigger a global risk-off impacting emerging and US markets. China has called for an immediate tariff lift, Reuters reported.
Implication for Bitcoin: Death Cross
While Bitcoin held at $82,000 post-tariff announcement, the 'Death Cross' alarm rang. Bitcoin's 50-day simple moving average (SMA) is set to break below its 200-day SMA, signaling a potential bearish reversal. The Death Cross has a mixed track record in predicting Bitcoin's price trends, but its emergence amid trade tensions raises concerns. On Deribit and Amberdata, options trend towards downside protection through June.
Impact on Crypto Markets and Global Economy
A Death Cross occurs when a short-term moving average crosses below a long-term moving average. This pattern suggests major weaknesses and serves as a warning to investors. The occurrence of this signal amid trade tensions could lead to a significant price drop. Only time will tell if BTC will form a Death Cross and trigger a decline.
Trump's announced tariffs greatly impact financial markets and Bitcoin's price. China's response could significantly alter the market landscape, monitored closely by investors and analysts.
