Bitcoin Volatility Amid China’s Tariff Announcements and Market Declines
Cryptocurrency markets experienced significant volatility on April 4, 2025, as major global economic developments impacted the price of Bitcoin.
Bitcoin Drops Briefly as China Announces New Tariffs on US
Bitcoin briefly fell towards $81,000 after China announced a 34% tariff on all goods imported from the United States. Additionally, China added 11 American firms to its unreliable entity list and placed export controls on seven rare-earth minerals critical to US manufacturing. The decision, set to take effect on April 10, caused global markets to decline and risk assets to fall. Bitcoin, which peaked above $84,000 earlier in the day, tumbled to $81,745 before recovering. This news impacted the cryptocurrency market significantly.
A Blueprint for Digital Assets in America
In 2008, an anonymous person or group known as ‘Satoshi Nakamoto’ introduced Bitcoin, a peer-to-peer system for value exchange without intermediaries. This revolutionary concept gave birth to digital assets, which soon expanded to include services and digital products. Over the past decade, innovators have built decentralized networks for various services like computing, file storage, asset exchange, and more. Digital assets have potent financial and non-financial use-cases.
Traders Holding onto Bitcoin Despite Market Panic: Binance
Crypto markets declined by 4.4% in March due to concerns over the ongoing trade war and monetary policy. According to a new report from Binance, traders have not given up on Bitcoin despite the market turmoil. The report delineated key trends in the crypto market last month, highlighting that tariff tensions between the U.S. and its major trading partners were the primary drivers of volatility. This was enough to drag down both crypto and stock prices, despite several positive developments. Bitcoin (BTC) reserve, monetary policy, and fears over the trade war are stirring the markets.
Riot Platforms Hits Post-Halving Bitcoin Production High, Expands AI Capacity
Riot Platforms (RIOT) reported strong operational performance in March 2025, with Bitcoin (BTC) production rising to 533 BTC, the most since the reward halving almost a year ago. This represents a 13% month-on-month increase and 25% more than a year before. The company’s Bitcoin holdings grew to 19,223 BTC. Riot plans to aggressively pursue development of its Corsicana facility to capitalize on rising demand for compute infrastructure used in artificial intelligence (AI) and high-performance computing (HPC). A feasibility study confirmed the site’s potential to support up to 600 megawatts of additional capacity for AI/HPC applications.
Bitcoin Price Steady Above $80,000 Amid Market Volatility
Bitcoin price held steady above the critical support level of $80,000 as trade-related risks continued to rise. Bitcoin (BTC) was trading at $83,230 Friday morning, marking a 9% gain from its lowest point in March. This outpaced the U.S. stock market, with the Dow Jones index plunging by over 1,080 points on Friday, now down 13% from its 2024 high. The Nasdaq 100 has entered a bear market, falling over 20% from its yearly peak, while the S&P 500 and Russell 2000 also declined significantly. Two macro catalysts may provide support to Bitcoin and equities.
