Market Volatility: Understanding the Impact of New Tariffs on Cryptocurrency and Stocks

Bitcoin is currently at $77,500 as this article is being written, while altcoins have continued the downward trend. Although there had been a previous recovery due to positive futures contracts from the United States, the statements made after the market opened have changed the momentum. An unofficial announcement regarding additional taxes from China is expected to take place tomorrow, indicating that the value of cryptocurrencies may continue to fall. The Fall of Cryptocurrency on April 9 News about Black Monday emerged before cryptocurrencies began to fall by up to 20%. Reports indicate that an additional 104% customs tax is being applied to China. This late development caused the SPX index to quickly drop from the range of 5160 to just below 5110. "Fox News: The White House press secretary announced that due to China not retracting its promise, an additional 104% customs tariff has taken effect at noon Eastern Time and will be collected starting April 9."

This is not surprising, as Trump had previously threatened to impose an additional 50% tariff effective April 9, emphasizing that China must back down. The implementation of this new tariff could drive negativity in both the cryptocurrency and stock markets, indicating further declines in the hours to come. China shows no signs of backing down; instead, it appears to be defiant, with recent posts mocking American citizens in videos. Additionally, the Chinese President made bold statements asserting, "Our economy is not a pond but an ocean," directly countering claims made by U.S. officials that China is unwilling to negotiate. The U.S. Economy and Reports U.S. Trade Representative Greer implied that Trump would not accept a scenario where Wall Street dominates the economy, showing indifference to stock losses. Greer also stated that tariffs would not affect consumers; however, this view seems misguided as even expectations can drive prices up and dampen economic confidence. Fed member Goolsbee recently noted in statements that tariffs are more significant than expected. He emphasized that the Fed needs to have a long-term vision rather than reacting to stock market fluctuations. There is a disagreement among companies about how quickly the increase in tariffs will affect consumers, which could lead to the bankruptcy of suppliers. "The Fed's response to negative supply shocks remains uncertain. Sentiment measures have nearly collapsed, raising concerns. Businesses will hesitate to invest when rules are unclear. There is a fear of high inflation returning." – Goolsbee Italian Prime Minister Meloni announced her upcoming visit to the United States on April 17 to discuss tariffs. This indicates that the likelihood of a short-term resolution is very low, as even countries that are close to reaching an agreement may not achieve results. "The Italian government plans to use 14 billion euros from EU post-COVID funds and 11 billion euros from the Cohesion Fund to help companies cope with the negative impacts of U.S. tariffs." – Meloni Such measures may bring long-term benefits to cryptocurrency, but they do not have much significance in the short term. ⚠️IMPORTANT! If you like this topic, don't forget: • Follow me @blogtienso for more interesting content! • Like, share, and leave a comment 💖 and don't forget to DYOR! #Write2Earn #Write\u0026Earn $BTC