U.S. Tariffs Spark Global Market Turmoil, Bitcoin Drops 6%

On April 9, 2025, global financial markets experienced significant turbulence as the U.S. prepared to implement 104% tariffs on Chinese imports. China’s CSI 300 Index declined by 1.2%, the Shanghai Composite Index decreased by 1.1%, and Hong Kong’s Hang Seng Index dropped 3.1%. This development intensified the ongoing trade conflict between the U.S. and China, leading to increased market volatility. Investors expressed concern that these tariffs could further strain global economic conditions, prompting a shift away from riskier assets.

Japan’s Nikkei 225 index also mirrored the global decline, dropping over 3% to 32,010.93. The broader Topix index fell 3% to 2,360.32. Technology stocks were notably impacted, with Advantest declining by 9%, Tokyo Electron by 4.85%, and SoftBank Group by 5.96%. The heightened trade tensions have contributed to significant fluctuations in global financial markets, with investors increasingly concerned that the impending tariffs could slow global economic growth.

The crypto market experienced a significant downturn, with Bitcoin dropping sharply below $75,000, losing 6% in a single day. This decline was triggered by the fall of Asian and global stock markets in response to new U.S. tariffs on Chinese imports. The uncertainty surrounding international trade and the potential for a global recession added to the market's volatility. The S&P 500 fell 1.6% after wiping out an early gain of 4.1%, reflecting the broader market's reaction to the tariff announcements. The crypto market, including Bitcoin, Ethereum, and most altcoins, continued to reel from the latest U.S. tariff hike on China, with the total market capitalization dropping by 30% from its peak. The new round of uncertainty, coupled with the tariff announcements, led to a 5.97% decrease in the total crypto market cap in 24 hours, falling to $2.47 trillion. The crypto market has now wiped out 9% of its total market cap since the tariff announcement, falling from $2.72 trillion to $2.47 trillion. The market's reaction to the tariffs highlighted the broader economic concerns, with inflation and capital dilution from taxes, regulation, and competition being significant factors. The tariffs triggered a meltdown in the market, with Bitcoin consolidating around the $85,000 level for weeks before the shakeout. As tariffs took effect, global markets plummeted, and cryptocurrencies like Bitcoin, Ethereum, and XRP slumped. Ethereum and XRP wiped out their value in the last 24 hours by nearly double digits. The market's reaction to the tariffs was swift and severe, with derivatives traders de-risking and a near 10% decline in open interest. The market logged $1.61 billion in crypto liquidations in the last 24 hours, and Bitcoin’s dominance climbed slightly to 62.62%.

The impact of the tariffs on the crypto market was significant, with experts weighing in on the potential long-term effects. Greg di Prisco, co-founder of M^0 Labs, commented on the Trump administration’s impact on crypto, noting the significant shift in regulatory tone from enforcement-focused to innovation-friendly. Sid Powell, CEO and co-founder of Maple Finance, believes that Trump’s commitment not to liquidate the US government’s Bitcoin holdings removes nearly $17 billion of potential selling pressure from the market. Anthony Anzalone, CEO and founder of Layer 1 blockchain XION, highlighted the significant shift in regulatory tone and the commitment to preserving core crypto principles. Matteo Greco, a digital asset research analyst, commented on Trump’s crypto reserve plans and shared his expectations for the sector in 2025, noting the potential for an official audit and discussions on acquiring more BTC without impacting taxpayers. The overall sentiment among experts was that the tariffs had a significant impact on the crypto market, with the potential for long-term regulatory changes and market adjustments.