Bitcoin Price Drops Below $75K as April 9 Trump–China Tariffs Trigger Crypto Crash — Will BTC Surge This Week?

Global markets felt the impact when the Trump administration suddenly confirmed it would impose 104% tariffs on Chinese imports, which also disrupted the cryptocurrency sector. Bitcoin price prediction turned bearish after the White House announcement triggered a steep April 8 drop, which continued on April 9. Often considered a hedge against market swings, BTC price sank below $75,000. This drop erased gains from just a day before, when rumors hinted at a possible tariff pause.

Traders briefly hoped for stability when BTC climbed over $80,000, driven by false reports about eased United States-China trade tensions. The official start of severe Trump China tariffs, however, ignited fears of a global economic downturn. This led to a broad sell-off in risk assets. Analysts now think Bitcoin may face turbulence unless market sentiment improves or monetary policy changes considerably.

Bitcoin Price Sinks as Tariff Fears Worsen

Markets faced immediate instability following confirmation of the 104% Trump China tariffs scheduled for April 9. Stock indices, including the S&P 500 and Nasdaq, reversed gains achieved earlier. Mirroring this trend, Bitcoin also fell significantly, reaching about $74,3K. This reflected widespread investor concerns that increasing trade tensions would harm worldwide economic growth.

The BULL trap:

We just witnessed the biggest bull trap of 2025 with the S&P 500 erasing a ~4.5% rally in ~3 hours.

Between 10:30 AM ET and 3:15 PM ET, the S&P 500 erased -$2.3 TRILLION of market cap.

Bull traps are TEXTBOOK signs of a bear market.

(a thread) pic.twitter.com/sGIqMRluiE

— The Kobeissi Letter (@KobeissiLetter) April 8, 2025

After the tariff news, Goldman Sachs adjusted its recession prediction upward to 45%. At the same time, JPMorgan projected several interest rate cuts beginning in June. This broader economic uncertainty puts more pressure on cryptocurrencies. This is because they are known as high-risk investments that react strongly to macroeconomic shifts.

Different Views: Is BTC a Risk Asset or a Safe Haven?

The response to the Trump China tariffs has sparked renewed debate regarding Bitcoin’s place during volatile economic conditions. Some experts, like Aurelie Barthere from Nansen, warn a full trade war would harm risk assets, crypto included. She labels that outcome a “worst case,” particularly for valuations that rely on robust economic growth.

In contrast, others find a potential opportunity within this scenario. Arthur Hayes, BitMEX co-founder, believes the tariffs might push Chinese investors toward BTC to hedge against yuan devaluation. China has historically seen capital flight boost Bitcoin demand. Hayes expects a similar dynamic could play out if the yuan faces pressure from continued trade disputes.

On-Chain Signals Point to More Turbulence Ahead

Further contributing to the anxiety, CryptoQuant data suggests long-term Bitcoin holders might be getting ready to sell. A key indicator, the Exchange Inflow Coin Days Destroyed (CDD), jumped significantly on April 7. This metric monitors when long-inactive coins move to exchanges. Such activity has historically led to a considerable Bitcoin price drop, hinting that the current downward trend could persist.

Analysts are watching critical support zones for BTC between $77,000 and $73,400 to refine their Bitcoin price prediction. This level, termed a “fair value gap,” was established during the November 2024 rally and might offer a buffer against more losses. Still, if long-term holders continue selling, this support might not hold, highlighting Bitcoin’s fragility when facing macroeconomic shocks.

A Pivotal Moment for Bitcoin’s Identity and Future

The next few weeks are critical in determining whether Bitcoin can maintain its position as a safe haven or if it will remain categorized primarily as a speculative risk asset. If inflation in China or ongoing trade problems encourage investors to seek decentralized assets, BTC might find new buyers. These could come from markets traditionally cautious about adopting crypto.

Nevertheless, rising recession fears and tighter global financial conditions could cause the Bitcoin price drop, making it undesirable. Even risk-tolerant investors might choose to stay away in this scenario. For the moment, this digital currency is in uncertain territory. It’s caught between its potential as a protective shield and its vulnerability to the same market turmoil it’s supposed to counter.