Bitcoin’s price dropped below $76,000 on Tuesday night as markets braced for the rollout of steep new tariffs tied to President Donald Trump’s expanding trade war. Investors responded cautiously ahead of the midnight deadline for a wave of “reciprocal” levies targeting dozens of countries, with China receiving the sharpest increase.
The U.S. had already enacted a baseline 10% tariff across all imports last week, following Trump’s so-called “Liberation Day” declaration. However, the latest round imposes an additional 50% tariff on Chinese goods, pushing the total effective rate to 104%. The decision comes in response to Beijing’s 34% counter-tariff on U.S. exports.
Speaking at a press conference, White House press secretary Karoline Leavitt defended the administration’s aggressive stance:
“It was a mistake for China to retaliate,” she said, signaling no intent to back down from the escalating economic conflict.
The growing tension between the world’s two largest economies has contributed to broader financial market volatility, with Bitcoin among the risk-sensitive assets reacting to geopolitical pressure.
Financial Markets Fluctuate as Global Tariff Fallout Widens
The impending tariffs have unsettled global financial markets. Major U.S. stock indices, including the S&P 500 and Nasdaq Composite, have posted declines, with the Nasdaq closing down 2.1% and the S&P 500 down 1.6%. Energy prices have also taken a hit, with Brent crude falling 2.29% to $62.74 per barrel.
Bitcoin dipped below $76,500 on Tuesday night—down roughly 2% over the past 24 hours—after briefly pushing past $80,000 earlier in the day. The asset had already fallen to $74,700 on Monday, reflecting heightened volatility as trade tensions escalated ahead of the tariff deadline.
While uncertainty persists over the longer-term market impact, geopolitical developments continue to weigh heavily on crypto performance. U.S. Treasury Secretary Scott Bessent indicated on X that the White House may begin negotiations with over 50 countries affected by the tariffs, though he acknowledged during a Fox News appearance that some talks may extend into June.
Meanwhile, foreign governments are beginning to respond. Canadian Prime Minister Mark Carney announced a 25% tariff on select vehicles, set to take effect at midnight. In a statement posted to X, Carney wrote:
“President Trump caused this trade crisis — and Canada is responding with purpose and with force.”
The broader uncertainty is keeping traders on edge, with Bitcoin now acting as a barometer for global sentiment amid rising protectionism and potential economic fragmentation.
Analyst Perspectives on Bitcoin’s Trajectory
Analysts remain divided on Bitcoin’s near-term outlook amid ongoing trade tensions. Some predict that continued hostilities could exert further downward pressure, potentially pushing BTC toward the $73,000 range. Conversely, others argue that Bitcoin’s decentralized nature and independence from traditional financial systems could boost its appeal as a hedge against economic instability.
Binance CEO Richard Teng previously suggested that, despite short-term volatility, Bitcoin may benefit from its status as a non-sovereign asset in the context of a prolonged trade war.
Quick Facts
- Bitcoin’s price fell below $76,000 on Tuesday night amid escalating U.S.-China trade tensions.
- The U.S. imposed an additional 50% tariff on Chinese imports, bringing the total tariff rate to 104%.
- Major U.S. indices, including the S&P 500 and Nasdaq, experienced declines in response to tariff announcements.
- Analysts are split on Bitcoin’s outlook, with some predicting further declines and others viewing it as a hedge against economic instability.
