Biden’s 104% China Tariffs Crush Bitcoin’s Recovery — How Low Can BTC Go?
While global markets reeled from the latest salvo in the US-China trade war, Bitcoin traders took a serious hit. The Biden administration’s announcement of a massive 104% tariff on Chinese imports, set to take effect April 8, 2025, sent shockwaves through financial markets. Bitcoin wasn’t spared. Not even close.
The digital asset, which had been riding high, suddenly found itself in troubled waters. BTC prices corrected sharply to around $81,600-$82,000 following the news. So much for being an “uncorrelated asset.” Seems like Bitcoin traders can’t escape geopolitics after all.
China wasted no time responding. Their April 4 announcement of 34% retaliatory tariffs on US imports only intensified market anxiety. Two economic superpowers playing chicken rarely ends well for investors caught in the middle. The cryptocurrency market, still maturing and volatile, proved particularly vulnerable to these macro shocks.
The damage was swift and brutal. A staggering $91 million in Bitcoin long positions were liquidated in just 24 hours as traders rushed for the exits. That’s a lot of crushed dreams and margin calls. The liquidation cascade triggered further sell-offs, creating a downward spiral that tested even the most diamond-handed HODLers.
In total, nearly $793 million evaporated from the crypto market. Just gone. Poof. All because two countries can’t play nice in the global trade sandbox. U.S. miners who depend on Chinese-manufactured ASIC equipment face significant vulnerability in their operations.
Bitcoin bulls who had been celebrating recent gains suddenly found themselves defending key support levels. The market that had seemed unstoppable just days earlier now looked decidedly fragile.
The timing couldn’t have been worse for crypto enthusiasts. Bitcoin had been building momentum, with institutional adoption growing and spot ETFs attracting fresh capital. Then came the tariff drama, reminding everyone that no market exists in a vacuum.
As traders lick their wounds and analysts recalibrate their models, one thing is clear: the road to Bitcoin’s recovery just got a lot bumpier. Many investors are now using profit calculators to assess potential losses and determine their next moves in this volatile environment. Historical data suggests that Chinese investors may turn to Bitcoin as a flight to safety amid the yuan’s devaluation to its lowest level in over two years. Geopolitics strikes again, and this time, it brought a sledgehammer.
