Markets on Edge as China Hits U.S. with 34% Tariff – Bitcoin, Stocks React

Global markets are on edge as China slams the U.S. with a 34% tariff, sending shockwaves through Wall Street and crypto. Bitcoin, which had recently shown signs of recovery, climbing above $84K, took a hit as Nasdaq futures plunged further.

Bitcoin fell from $84,600 to $83,000. While that’s a noticeable drop, it wasn’t as steep as many feared. Experts say the market is reacting less dramatically because the uncertainty is now gone. Often, not knowing what’s coming creates more panic than the event itself.

Investors Pull Billions from U.S. Stocks

Since Donald Trump returned to office on January 20, concerns over tariffs and a possible global trade war have unsettled markets. These worries led to a major drop in investor confidence. As a result, Bitcoin fell from a record high of over $109,000 to below $80,000 last month.

In the week ending April 2, U.S. investors pulled $10.85 billion out of equity funds. Many feared that Trump’s trade policies could raise business costs, hurt profits, and even trigger a recession. That’s a big change from the $22.89 billion they had invested just the week before.

“Tariffageddon” Hits 180 Countries

This week, Trump imposed major tariffs on 180 countries, with China, the EU, and Southeast Asia hit hardest. U.S. tariffs have now crossed the 20% level, matching the historical threshold set by the Smoot-Hawley Act of the 1930s.

Oddly enough, this dramatic “tariffageddon” moment might bring some relief. With uncertainty out of the way, investors may begin to feel more confident. After the tariffs were announced, bond yields dropped around the world, hinting that inflation could slow down. This goes against the common fear that tariffs would cause stagflation—slow growth and high prices—which might have forced the Fed to keep interest rates high.

Bond Yields Fall – Rate Cuts in Sight?

U.S. 10-year bond yields dropped below 4% for the first time since October. Yields in the U.K., Germany, and Japan also fell sharply. This gives hope that the Fed could soon lower interest rates—a move that usually supports riskier assets like crypto.

All Eyes on Friday’s Jobs Report

Investors are watching Friday’s U.S. jobs report closely. If the numbers are strong, confidence may grow. If they’re weak, the Fed may be more likely to cut rates. Either outcome could be positive for markets. And since the report won’t yet reflect Trump’s tariffs, it offers a clearer view of the economy before the policy change.

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Bitcoin’s Drop Isn’t About Bitcoin

Crypto experts say the recent fall in Bitcoin’s price isn’t because of any weakness in the asset itself. Instead, it’s being pulled down by global market trends. As the broader economic situation improves, Bitcoin could bounce back faster than traditional investments.

The Brighter Side

Even with market pressure, the crypto industry continues to move forward. Circle’s USDC stablecoin is on track for an IPO. Coinbase Derivatives has filed with the CFTC to self-certify XRP futures. Ethereum is preparing for its Pectra upgrade, launching on May 7, which is expected to be a major step forward.

The SEC has officially acknowledged Fidelity’s application for a spot ETF tied to Solana (SOL), bringing it one step closer to being approved. Despite recent market stress, crypto continues to evolve and grow at a fast pace.

Stay tuned—big moves are ahead in crypto.