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Highlights
- Crypto market is in a state of uncertainty as China has announced an 84% tariff on US goods effective April 10.
- The EU has also announced up 25% tariffs on US goods which will become effective from April 15.
- Analysts remain divided on whether the market will recover from current levels or drop lower.
The crypto market is currently in a state of uncertainty and risks further downside as China and the EU announce retaliatory tariffs on US goods. Some analyses suggest that the market could drop lower, led by Bitcoin, while others indicate that this might be the bottom, regardless of whether the trade war persists.
What Next For Crypto Market As China, EU Announce Tariffs
The crypto market is at risk of a further crash, with the Bitcoin price possibly dropping to new lows following China and the EU’s announcement of retaliatory tariffs on US goods. According to a CNN report, China initially announced 84% tariffs on US imports, which became effective from April 10.
Meanwhile, the EU has announced plans to impose 10% and 25% tariffs on US imports, effective April 15. As CoinGape reported, the crypto market witnessed another crash yesterday following news that the US would impose 104% tariffs on China, which took effect today. China has now gone as far as to raise its tariffs on US goods to 125%, starting from April 12.
Crypto analysts such as Rekt Capital have suggested that the Bitcoin price risks dropping lower in the short term amid this tariff war. In an X post, Rekt Capital stated that BTC is experiencing downside continuation after upside wicking into the early March weekly lows.
He added that having confirmed this red level as new resistance, the Bitcoin price is now dropping into the $71,000 to $83,000 volume gap to fill this market inefficiency.
Meanwhile, crypto analyst CrediBULL Crypto suggested that BTC could still drop lower to suck the liquidity at the higher timeframe demand between $69,000 and $74,000.
Bullish Case For The Market
Market expert Anthony Pompliano has again raised the possibility of the US Federal Reserve intervening in the tariff war by announcing an emergency cut rate. Pompliano noted that the increasing 10-year yield likely pushes the Fed closer to acting in emergency fashion.
As CoinGape reported, Fed Chair Jerome Powell could announce an emergency rate cut as Trump’s tariffs persist. This would be bullish for the crypto market, as the US Central Bank’s easing monetary policies would inject more liquidity into crypto assets.
US President Donald Trump also recently stated that it is a great time to buy, which could mark the bottom for the market. Crypto analyst MikyBull Crypto noted that the president has made the same statement on two occasions, which marked the bottom.
The first was in October 2018, with the market bottoming two and a half months later, while the second was in March 2020, with the market bottoming one to two weeks later.
Interestingly, the US president announced not long after that he was pausing the reciprocal tariffs for all countries except China. The market quickly rebounded on the back of this news, although it remains to be seen if this will be a bullish reversal or a bull trap.
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