Market Volatility Triggered by Trade Tensions

On April 4, 2025, major cryptocurrencies such as Bitcoin (BTC) and XRP faced downward pressure amid broader market turmoil triggered by geopolitical tensions. Bitcoin traded at $82,163, down 1.1% over the past 24 hours, while XRP rose slightly by 0.3% to $2.04. This market movement followed significant declines in U.S. stock futures, with the S&P 500 futures down about 3%, after a sharp 4.8% drop on Thursday—the worst day for the index in five years. The volatility was sparked by President Donald Trump’s announcement of extensive reciprocal tariffs and China’s subsequent retaliation with a 34% tariff on all U.S. goods starting April 10. Tracy Jin, COO of MEXC, suggested that escalating trade tensions and potential Federal Reserve interest rate cuts could exacerbate volatility in the crypto market. Jin also forecast Bitcoin may drop further, potentially reaching between $52,000 and $56,000 in the summer. ​