Bitcoin Falls to $77,000 as US Sets 104% Tariffs on China, Shaking Crypto Markets

Bitcoin took a sharp dive down to $77,000 minutes ago, following an announcement from US President Donald Trump confirming a hefty 104% tariff on Chinese imports. The move, which ramps up an already tense trade tariff war, sent ripples through financial markets, undoing a brief wave of optimism that had pushed the cryptocurrency above $80,000 earlier in the day. With the tariffs slated to kick in at midnight on April 9, investors braced for the economic fallout as global risk assets felt the strain.

The S&P 500 and Nasdaq, which had climbed about 4% during the trading session, quickly surrendered those gains as the tariff news sank in. Bitcoin mirrored this rollercoaster, climbing on early hopes of de-escalation before retreating as Trump doubled down on his trade stance. The announcement overshadowed recent talks with allies like South Korea and Japan, which had briefly buoyed market sentiment before the tariff confirmation brought uncertainty back to the forefront.

Trade Talks Falter Amid Rising Tensions

President Trump had spent days engaging with international partners, with the White House noting that nearly 70 countries reached out to negotiate trade deals in recent weeks. He praised the process as smooth and effective, hinting at a possible softening of tensions that had gripped markets since early April. However, his decision to push forward with the 104% tariffs on China dashed those hopes, signaling a hardline approach despite the flurry of diplomatic activity.

China, for its part, wasted no time firing back. On Monday, Beijing responded to Trump’s initial tariff threats, promising to resist what it labeled as “US blackmail” and vowing to stand firm. The sharp rhetoric from both sides suggests a prolonged standoff, leaving little room for negotiation as the deadline looms.

The tariff escalation marks a pivotal moment in Trump’s trade strategy, which has kept investors on edge since he re-entered the spotlight. Bitcoin’s drop to $77,000 reflects broader unease, as traders weigh the potential for disrupted supply chains and higher costs against the backdrop of an already volatile year. While the cryptocurrency had enjoyed a relief rally past $80,000, the latest developments pulled it back, highlighting its sensitivity to macroeconomic shifts.

For now, markets remain in a wait-and-see mode as the tariffs take effect. The White House’s outreach to allies may still yield some stability, but the immediate focus rests on China’s next move and how global equities, including Bitcoin, weather the storm.