Bitcoin Faces Turbulence as Roubini Warns Against Fed Reliance Amid Trade Tariffs

Economist Nouriel Roubini, famously known as ’Dr. Doom,’ has cautioned investors against expecting the Federal Reserve to quickly stabilize financial markets disrupted by recent aggressive trade tariffs imposed by the Trump administration. The tariffs, including a staggering 104% levy on Chinese imports, have triggered significant market declines, with the Nasdaq 100 dropping 12% and Bitcoin (BTC) also experiencing notable volatility. As of April 9, 2025, the cryptocurrency market remains under pressure, with traders closely monitoring macroeconomic developments for cues on future price movements.

Roubini Warns Against Relying on Fed for Tariff-Induced Market Instability Resolution

Nouriel Roubini, known as Dr. Doom, has warned traders not to rely on the Federal Reserve to swiftly resolve financial market instability caused by President Trump’s tariffs on international trade. A week ago, Trump imposed heavy tariffs on many nations, including a 104% levy on Chinese imports, causing financial markets to plummet. The Nasdaq 100 has lost 12%, and Bitcoin (BTC), the largest cryptocurrency by market value, dropped 10%, hitting prices below $75,000. Volatility in the U.S. Treasury market also surged, with yields on longer-dated bonds increasing and prices decreasing as equity markets declined.

Bitcoin (BTC) Struggles Amid Escalating US Trade War Tensions

A firestorm of tariffs has been unleashed on many countries across the globe by the Trump administration, leading to a huge 21% fall in the S&P 500. Bitcoin bulls are battling to keep the king of the cryptocurrencies afloat amid the heightened state of disorder and uncertainty in global economies due to the US/China trade war and tariffs imposed by various countries.

Is the Fed’s Secret Liquidity Boost Causing Bitcoin’s Price Crash?

Global markets are on edge as the Federal Reserve is secretly pumping money into the market, despite no official policy change. Treasury yields are rising, and Bitcoin has crashed by $500 billion. With $6.5 trillion in debt coming due, experts warn that this secret money injection may not be enough to prevent a financial crisis. Additionally, the U.S.-China trade war is heating up, with Chinese Foreign Ministry spokesperson Lin Jian firmly opposing President Donald Trump’s proposed tariffs, stating that China would fight back. The increasing tariffs are adding to the market uncertainty.

China May Boost Bitcoin Amid Rising U.S. Tariffs

According to Arthur Hayes, founder of BitMEX, China’s response to new U.S. tariffs could trigger a massive capital flight towards Bitcoin (BTC). This dynamic, observed in the past, could reignite the bullish trend of the crypto market in 2025. On April 7, Donald Trump threatened to impose additional tariffs of 50% on Chinese products starting April 9, prompting Beijing to announce a 34% increase in tariffs on American imports set for April 10. The Chinese Ministry of Commerce stated that if the United States implements reinforced tariff measures, China will resolutely take countermeasures. Among the options considered by Beijing is a potential devaluation of the yuan, which could benefit Bitcoin.

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