Bitcoin Drops 3% to $78,200 as Trade Tensions Resurface

Bitcoin (BTC) experienced a significant decline on April 10, dropping more than 3% to a low of $78,200. This reversal came after the cryptocurrency had surged to an intraday high of $83,424 the previous day, following President Donald Trump’s announcement of a temporary tariff pause. The retreat in Bitcoin’s value reflects growing investor skepticism over the sustainability of the previous day’s rally and increasing concerns about renewed trade hostilities with China.

The sell-off began after the White House clarified that while most tariffs would be paused for 90 days, a sharp escalation was planned afterward, with rates on Chinese imports set to rise to 145%. This announcement rattled global markets that had initially interpreted the move as a de-escalation of trade tensions. Instead, it was increasingly viewed as a strategic delay that could deepen economic uncertainty.

Ethereum (ETH), the second-largest cryptocurrency by market value, also declined nearly 7% to a low of $1,470 amid broader weakness in digital assets. XRP, which had briefly traded above $2, fell back more than 5% to $1.94. Other major altcoins, including Solana (SOL) and Avalanche (AVAX), posted similar percentage losses as sentiment turned risk-off.

Traditional financial markets also gave up ground. The Dow Jones Industrial Average dropped 2.6%, the S&P 500 lost 4.2%, and the Nasdaq Composite slid 4.2% as volatility returned in force. Technology and semiconductor stocks, many of which are exposed to the Chinese supply chain, bore the brunt of the sell-off.

The broader risk-off mood came despite a softer US Consumer Price Index reading for March. Headline inflation fell 0.1% month-over-month, while the core rate, excluding food and energy, rose just 0.1%. The data was seen as a positive signal for Federal Reserve doves, potentially opening the door to rate cuts later this year. However, investors largely shrugged off the inflation print in light of geopolitical concerns.

Crypto traders, who have increasingly priced in macro developments alongside blockchain-native catalysts, are watching for any new signals out of Washington or Beijing that could further influence capital flows. Despite the pullback, Bitcoin remains up more than 40% year-to-date, driven by rising institutional demand, interest in spot ETFs, and growing adoption narratives around digital assets.

However, the day’s action highlights the fragile balance between bullish momentum and broader economic risks. With global trade policy once again in the spotlight, market participants are bracing for more turbulence ahead. The retreat in Bitcoin’s value reflects growing investor skepticism over the durability of the previous day’s rally and rising fears of renewed trade hostilities with China. The sell-off began after the White House clarified that while most tariffs would be paused for 90 days, a sharp escalation was planned afterward, with rates on Chinese imports set to rise to 145%. This announcement rattled global markets that had initially interpreted the move as a de-escalation of trade tensions. Instead, it was increasingly viewed as a strategic delay that could deepen economic uncertainty.