In a dramatic escalation of the US-China trade war, Trump threatened to raise tariffs on Chinese imports. He announced on Truth Social that China would face a 50% tariff unless it removed retaliatory measures by 8 April 2025.
These measures would push the total tariffs on Chinese goods to 104%. The specific items, like automobiles and electronics, should face even higher rates.
The US has already imposed a 54% tariff on Chinese goods. China retaliated with 34% tariffs on US products. It has led to rising concern in both stock and crypto markets.
Since the announcement of the ‘Liberation Day’ tariff increase, average US tariffs on foreign goods have reached 18.8%. As a result, the crypto market has lost $1 trillion in value. Traders are fearing rising inflation and negative economic consequences.
However, some traders remain optimistic, believing that Trump’s tariffs are a negotiating tactic rather than a long-term measure. Recent polling on Polymarket shows that 59% of traders expect Trump to reduce most tariffs by July.
Bitcoin’s price spiked to $81,119 following the announcement, only to fall back to $78,321 as traders await further developments.
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Billionaire investor Ray Dalio has warned that the recent market turbulence is part of a larger global crisis. The turmoil has been triggered mainly by President Trump’s tariff policies.
In a new statement, Dalio described the situation as a ‘once-in-a-lifetime’ breakdown of the global order. He emphasised that this disruption is driven by forces far beyond short-term market volatility.
Dalio pointed to five key forces reshaping the world. These include unsustainable debt, domestic political unrest, shifts in global power, environmental challenges, and the rise of technologies like AI.
He stressed that tariffs are just a symptom of larger systemic issues. One key issue is the imbalance between debtor nations, such as the US, and creditor nations like China.
The relationship between cryptocurrency markets and equities has become more intertwined. Bitcoin, in particular, has shown increased sensitivity to macroeconomic factors. It may decouple from risk assets, outperforming tech stocks despite rising yields and inflation fears.
As global financial and political structures continue to unravel, markets are likely to face more widespread disruptions.
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The leading crypto exchange, Bitget, has secured full regulatory approval in El Salvador. It has received both the Digital Asset Service Provider (DASP) and Bitcoin Services Provider (BSP) licences.
The expansion enables the exchange to offer an array of crypto services in the country. It includes spot and derivatives trading, staking, wallet infrastructure, and custody services. Bitget’s dual licensing enables it to offer a wider range of digital assets beyond Bitcoin to local users.
Additionally, Bitget plans to provide staking and futures trading services, along with educational initiatives to improve crypto literacy. The platform is customising its services to ensure secure and regulated crypto engagement for Salvadoran users.
El Salvador has a proactive approach to digital asset regulation, which is essential for its growth.
As part of its global strategy, Bitget has already secured licences in Hong Kong, Lithuania, and the UAE. The company is focused on expanding into regulated markets, offering secure and reliable services globally.
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Amid shifting regulations, the stablecoin issuer Tether anticipates that USDT may eventually become unavailable in either the US or Europe. CEO Paolo Ardoino said the firm is creating a second stablecoin to meet upcoming US regulations.
Ardoino noted that each would serve a different function. The proposed stablecoin would be US-based and intended for payments. USDT would continue serving emerging markets.
Tether has also responded to regulatory changes in Europe by supporting the development of locally compliant stablecoins.
Ardoino admitted that the firm envisions a future in which USDT plays a limited role in both Western markets. Instead, the focus will shift to global remittances and emerging economies where demand remains strong.
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Conor McGregor’s cryptocurrency project, REAL, failed to meet its $1 million fundraising target. It raised only $392,000 during its 28-hour presale.
The token saw 668 participants bidding, but the amount was well below the required minimum. As a result, all bids were refunded in full.
RWG cited challenging macroeconomic conditions and the distraction caused by the meme coin narrative for the failure. Despite this, the team reassured participants that the project would relaunch soon.
McGregor had emphasised that the REAL token wasn’t just another celebrity-backed gimmick. It was a serious attempt to change the crypto ecosystem.
The REAL token auction used a sealed-bid mechanism to promote fairness and transparency. Despite efforts, the project struggled with market confusion due to its link with McGregor and broader crypto market volatility.
The launch coincided with a decline in investor interest in meme coins. It was further exacerbated by global economic concerns, including President Trump’s tariff policies.
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Since February 19, US stock markets have suffered a massive $11 trillion loss, with the downturn worsening after President Donald Trump announced his new tariff policy.
The market lost $3.25 trillion on 4 April alone. The amount surpassed the entire global cryptocurrency market valuation, which stood at $2.68 trillion at the time.
Major tech stocks were among the hardest hit, with Tesla falling 10.42%, and Nvidia and Apple dropping 7.36% and 7.29%. The broad sell-off pushed the Nasdaq 100 down 6%, officially entering bear market territory.
Analysts have pointed to Trump’s 2 April tariff policy as a key factor. They warned that continued tariffs could lead to an unavoidable recession. The new tariffs include a 10% levy on imports and reciprocal tariffs to address trade imbalances.
While traditional markets are reeling, Bitcoin has shown resilience. Some analysts view Bitcoin’s stability as a potential hedge against macroeconomic instability.
Bitcoin commentator Anthony Pompliano suggested the Trump administration might be causing market turmoil. It is seen as an effort to pressure the Federal Reserve into lowering interest rates, crucial for managing US debt.
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Bitcoin has been struggling throughout April, with its price falling to a three-week low of $77,077. According to Ki Young Ju, CEO of CryptoQuant, this stagnation reflects a longer-term bearish trend.
On-chain data shows that capital inflows are rising. However, there is no corresponding increase in Bitcoin’s price, suggesting the market is in a bear phase.
Ju explained that a key indicator of a bear market is the divergence between market cap and realised cap. Realised cap tracks actual money flowing into Bitcoin through wallet movements. Market cap, on the other hand, reflects the most recent price on exchanges.
Ju pointed out that, historically, Bitcoin’s price does not experience a true reversal within a short period. He predicts that the current bear market could last at least six months, making a rapid recovery unlikely.
Global market instability, triggered by Trump’s new tariffs, has increased volatility and raised doubts about Bitcoin’s role as a haven.
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Prominent hedge fund manager Bill Ackman has called for a 90-day pause on upcoming US tariffs. He warned that the current policy direction could spark an ‘economic nuclear winter’.
A strong supporter of Donald Trump, Ackman expressed deep concern over the sweeping tariff measures announced last week. These include a 25% levy on all foreign-made vehicles and a 10% minimum import tariff.
Ackman cautioned that such drastic steps risk eroding global business confidence, halting investment, and causing mass layoffs. He called the administration’s approach simplistic and harmful.
Treating allies and adversaries alike, he said, damages the US’s reputation as a trading partner.
Markets have responded swiftly, with Bitcoin falling 7.6% to $77,300, wiping out around $70 billion in value. Ethereum dropped even further, losing 14% in a single day.
Analysts warn that if sentiment continues to slide, Bitcoin could fall as low as $52,000 by summer. Ethereum may face a more significant downside due to broader structural challenges.
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Arthur Hayes, the co-founder of BitMEX, believes that the tariffs introduced by US President Donald Trump could benefit Bitcoin to benefit. Bitcoin sees this impact occurring in the medium term.
He argues that while the tariffs may disrupt the global economy, the resulting financial imbalances would ultimately be corrected. The correction would come with printed money, which bodes well for Bitcoin’s price.
Hayes made his comments following the announcement of a 10% tariff on all countries, with certain nations like China facing even higher rates.
According to Hayes, these tariffs will weaken the US Dollar Index (DXY), as foreign investors sell off US stocks and repatriate their funds. The situation could push investors towards Bitcoin and other safe-haven assets like gold.
Hayes also predicts that tariffs on China could lead to a devaluation of the yuan. Furthermore, Hayes suggests that the Federal Reserve may need to implement easing measures. It could include rate cuts in response to the economic impacts of the tariffs.
Hayes’ stance aligns with Jeff Park of Bitwise Invest. He also believes that Trump’s tariffs could ultimately send Bitcoin’s price soaring.
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The President of Kyrgyzstan, Sadyr Zhaparov, announced a new collaboration between the National Investment Agency and Changpeng Zhao (CZ), the founder of Binance. The agreement focuses on developing the cryptocurrency and blockchain technology ecosystem within the Kyrgyz Republic.
The partnership will see CZ provide infrastructural and technological support. It will also include consultancy on crypto and blockchain initiatives. Additionally, educational programmes will be implemented to support the country’s development in these fields.
Zhao expressed his excitement about advising Kyrgyzstan, emphasising the importance of expanding crypto adoption globally. In a post on X, he highlighted his role in advising several governments on crypto regulatory frameworks and blockchain solutions.
He also clarified that his involvement is strictly related to cryptocurrency and does not extend to politics. The advisory role forms part of CZ’s broader strategy to enhance blockchain’s reach beyond just trading.
President Zhaparov views this collaboration as a significant step towards strengthening the country’s technological capabilities. The partnership aims to drive innovation, build expertise, and boost economic growth and security.
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