Bitcoin depends on tariff agreement between Trump and China

Crypt and Tradfi markets had a strong opening today (8), as Bitcoin briefly rose 5% due to optimism about a tariff agreement. China and institutional investors in the US want to avoid a trade war if possible.

Despite these encouraging signs, no agreement was actually reached, and Bitcoin also suffered subsequent losses. The whole market is in a state of uncertainty until the situation becomes clearer.

How will Bitcoin behave under tariffs?

Crypto markets operate in a climate of uncertainty, and finding a clear direction is still a challenge. After the significant settlements recorded yesterday (7), the market started today (8) with a tone of moderate optimism.

The movement gained strength mainly with the brief rise of about 5% of Bitcoin, driven by the expectations of a possible agreement around trade tariffs implemented during the Trump administration.

Bitcoin Daily Price Chart — Daily Price Chart of Bitcoin. Source: Tradingview

The price of Bitcoin has floated a lot due to tariffs, while speculation about a sale increases. However, the whole market is in a chaotic state now.

Today, Dow Jones Industrial Averaga rose 1,285 points, or 3.4%, while S&P 500 and NASDAQ Composite rose 3.4%and 3.3%respectively. However, hundreds of shares fell 20% or more.

Stock market reacts to tariffs. Source: The Kobeissi Letter

Meanwhile, Bitcoin has some advantages that can protect it from tariff volatility. For example, a recent Binance Research report states that less risky cryptors are the most isolated from falls.

This includes Centralized Rwas and Exchanges, but Bitcoin is in third place.

In addition, markets are very optimistic about an agreement to avoid tariffs. Yesterday, rumors of a break triggered a dollar trillion rally, highlighting the desperation of the traders for good news.

Despite retaliatory tariffs, China is equally eager to avoid a total trade war with the US. Trump stated who is making progress with China and South Korea, feeding optimism.

I just had a great call with the Acting President of South Korea. We talked about their tremendous and unsustainable Surplus, Tariffs, Shipbuilding, large scale purchase of U.S. LNG, their joint venture in an Alaska Pipeline, and payment for the big time Military Protection we…

— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 8, 2025

However, it is important not to overdo the chances of Bitcoin success under tariffs. Despite hopes from both sides of the Pacific, China confirmed who is prepared to fight in a trade war if Trump to press.

This may explain Bitcoin’s price falls, despite its strong performance since yesterday.

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