Bitcoin, Ethereum drop as Trump confirms 104% tariffs on China

Bitcoin, Ethereum and most Altcoins have broken down in the middle of an unprecedented American tariff hike on China.

Cryptographic markets are still in shock from the last American tariff hike. Tuesday April 8, the Confirmed White House That the price on all goods from China will increase to 104%, in force on April 9 at 12:01 p.m. Eastern time.

Shortly after this announcement, Bitcoin (BTC) Fallen at a daily hollow of $ 76.508, while Ethereum (Eth) below $ 1.454. The decline was probably due to the fears of the negative effects that these unprecedented prices would have on the world economy.

The White House decision came after China did not respond to Donald Trump’s ultimatum. Namely, the American president threatened an increase in additional 50% prices if China had not revoked its 34% reprisal prices on American products on April 8.

What prices mean for bitcoin and crypto

Several analysts have weighed on the effects that the American-Chinese trade war has on the cryptographic markets. For my part, Nansen analyst Aurelie Barthere called Climbing a “worst case” for risk assets, including crypto. According to Barthere, the climbing of prices affects economic growth in each country, bringing a “global growth shock”.

It would be a particularly negative scenario for risk assets, because these assets are strongly based on growth to increase their swollen assessments. However, some analysts dispute this catch, at least for Bitcoin. According to the co-founder of Bitmex Arthur Hayes, the climbing of trade war with China could be a Bitcoin catalyst.

Hayes predicts that a trade war will probably impose inflationary pressures at the Yuan. This could lead Chinese investors to turn to Bitcoin as a safe refuge. A similar scenario occurred before and increased the price of Bitcoin.

So far, it is not clear in which direction the White House will take prices in the future. On PolymarketThe chances that Trump reduces the majority of prices in July fell to 50%, compared to 64% on April 7.