On April 4, 2025, China responded to the last American tariff taxation by imposing an additional 34% rate on all goods imported from the United States. This degenerates the already tense trade war between the two largest economies in the world.
Bitcoin dropped 3% in the hours following the announcement, falling briefly below $ 82,000. This last development has aroused concerns between investors, analysts and participants in the cryptocurrency sector about its potential impact.
Bitcoin investors are concerned about the escalation of the trade war
According to Xinhua’s news agency, China will impose a rate of 34% on all products imported from the United States from April 10. Xinhua said that the United States’s “reciprocal rate” had violated the WTO rules, seriously damaging the legal and legitimate rights of WTO members and undermining the multilateral trade system and the international commercial order.
“This is a typical act of unilateral hegemony which harms the stability of the global economic and commercial order. China firmly opposes this,” said the spokesperson for the Ministry of Commerce in an interview concerning the Chinese trial against the “reciprocal rate” of the United States to the WTO.
Previously, President Trump had imposed a rate of 34% on China in addition to the 20% prices already imposed in two phases. This means that a total of 54% prices have been applied to China.
China’s news aroused concerns among cryptographic investors. On April 4, the Bitcoin price increased from $ 84,600 to $ 82,000, a drop of 3%.
At the same time, following the news, the long / short ratio of Bitcoin fell below 1, indicating a growing feeling for the uncovered sale, which has become dominant on the market.
Bitcoin and other markets have been affected. The S&P 500 has increased from 5,260 points to 5,250 points, while the industrial average of Dow Jones increased from 41,100 points to 40,500 points. China’s actions have raised concerns about the potential climbing of the world trade war.
“The” First World War “of the trade war began,” said Kobeissi’s letter.
What will happen to Bitcoin when the American-Chinese trade war degenerates?
This cryptocurrency, often praised as a coverage against economic instability, tends to behave as a risky asset during sudden uncertain periods. Historical models support this reaction-during the American-Chinese trade war in 2018-2019, Bitcoin experienced significant sales as prices have not increased, only recovered when the story of the preservation of value had priority.
A significant part of the global supply chain of cryptocurrency equipment comes from China, where companies like Bitmain dominate the production of ASIC mining machines – important devices for Bitcoin exploitation.
The United States is now faced at a rate of 34% on technological imports from China, the cost of importing these mining machines should increase dramatically. Bitcoin minors in the United States, already faced with high energy costs and competitive pressure on the hashrate, can see their profits more.
However, the long -term perspectives of Bitcoin may not be as dark as the initial reaction of the market. Some analysts suggest that prolonged commercial wars and economic friction could improve the call of bitcoin as decentralized active not affected by government intervention. If the prices lead to inflation or to weaken fiduciary currencies like the USD, investors can turn to cryptocurrencies as a safe refuge.
“It is not gold, and it is not the yen. Instead, Bitcoin emerges as a dynamic asset at risk – which does not collapse like high growth stocks but does not attract the same safety flow flows as traditional shelters,” said Beincrycrypto, the editor of Nexo Disla Zlatarev.
This feeling aligned with research indicating that instability often causes a drop in initial prices but can open the way for growth as acceptance increases.
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