Bitcoin briefly slid towards $81,000 as China announced new tariffs on US

Global Markets React to China’s Tariff Hike and Export Controls

China’s Tariff Hike and Export Controls Send Global Markets into a Downturn

Bitcoin price dropped sharply after China announced a 34% tariff targeting all goods imported from the United States. The Asian country government added 11 American firms to its unreliable entity list, targeting drone manufacturers and other key players.

Further tightening the screws, China reportedly placed export controls on seven rare-earth minerals critical to US manufacturing. These include samarium, gadolinium, and terbium — elements widely used in defense systems, electronics, and renewable energy equipment.

The decision, set to take effect on April 10, rattled global markets and sent risk assets into a downturn.

The Impact on Crypto Markets

According to data from CryptoSlate, the flagship digital asset fell nearly 3% within an hour. After peaking above $84,000 earlier today, Bitcoin tumbled to $81,745 before recovering slightly to trade at $82,530 at press time.

The price drop triggered widespread liquidations across the crypto market. Coinglass reported that over $86 million of leveraged positions were wiped out within four hours as traders scrambled to react to the sudden move.

The Wider Market Impact

The sell-off wasn’t limited to crypto, as traditional markets also faced pressure. According to an analysis from The Kobeissi Letter, the S&P 500 shed a staggering $3.5 trillion market value over two days.

Conclusion

The recent tariff hike and export controls imposed by China have sent shockwaves through global markets, leading to a sharp drop in Bitcoin’s price. The impact has been felt across the crypto market, with widespread liquidations and a significant loss of value. As the situation continues to unfold, it remains to be seen how the markets will react in the coming days and weeks.

FAQs

Q: What was the impact of China’s tariff hike on Bitcoin’s price?

A: Bitcoin’s price dropped sharply, falling nearly 3% within an hour and tumbling to $81,745 before recovering slightly to trade at $82,530 at press time.

Q: Which rare-earth minerals were subject to China’s export controls?

A: China reportedly placed export controls on seven rare-earth minerals critical to US manufacturing, including samarium, gadolinium, and terbium.

Q: What was the impact on traditional markets?

A: The sell-off wasn’t limited to crypto, as traditional markets also faced pressure. According to an analysis from The Kobeissi Letter, the S&P 500 shed a staggering $3.5 trillion market value over two days.

Q: What was the total value of liquidations in the crypto market?

A: Coinglass reported that over $86 million of leveraged positions were wiped out within four hours as traders scrambled to react to the sudden move.