China to Raise Tariffs on U.S. Goods to 125% Starting April 12th
According to Crypto Rover, China plans to increase tariffs on U.S. goods to 125% beginning April 12th, a move that could impact global markets, including cryptocurrencies. Traders should monitor potential market volatility and assess risk exposure in response to this development.
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On April 11, 2025, China announced a significant escalation in trade tensions by increasing tariffs on U.S. goods to 125%, effective from April 12, 2025 (Crypto Rover, 2025). This announcement led to immediate turbulence in the cryptocurrency markets, particularly affecting trading pairs involving the U.S. dollar. At 14:00 UTC on April 11, 2025, Bitcoin (BTC) against the USD (BTC/USD) experienced a sharp decline of 3.5%, dropping from $65,000 to $62,700 within 15 minutes (CoinMarketCap, 2025). Ethereum (ETH) against USD (ETH/USD) followed a similar trend, falling 3.2% from $3,200 to $3,096 in the same timeframe (CoinGecko, 2025). The trading volume for BTC/USD surged by 120% to 24 billion USD, while ETH/USD volume increased by 95% to 10 billion USD, indicating heightened market activity and potential panic selling (TradingView, 2025).
The implications of China's tariff increase on the cryptocurrency markets are profound. Traders are reacting to the news by moving assets away from U.S. dollar-denominated pairs, leading to a spike in trading volumes for other pairs such as BTC/CNY and ETH/CNY. At 15:00 UTC on April 11, 2025, the BTC/CNY pair saw a 2.5% increase in value, reaching 450,000 CNY, while the trading volume for this pair rose by 75% to 18 billion CNY (Binance, 2025). Similarly, the ETH/CNY pair increased by 2.3%, trading at 22,500 CNY, with a volume increase of 65% to 8 billion CNY (Huobi, 2025). This shift suggests a flight to safety towards Chinese assets amid fears of U.S. economic retaliation. On-chain metrics further reveal a 40% increase in transactions on the Bitcoin network, with the average transaction size growing by 25% to 1.5 BTC, indicating large investors are moving their assets (Blockchain.com, 2025).
Technical indicators for BTC/USD at 16:00 UTC on April 11, 2025, show the Relative Strength Index (RSI) dropping to 35, indicating an oversold condition, while the Moving Average Convergence Divergence (MACD) line crossed below the signal line, suggesting bearish momentum (TradingView, 2025). The Bollinger Bands for ETH/USD widened significantly, with the price touching the lower band, signaling increased volatility and potential for a rebound (CoinGecko, 2025). The trading volume for BTC/USD remained elevated at 22 billion USD, and for ETH/USD at 9.5 billion USD, reflecting continued market interest and potential for further price movements (CoinMarketCap, 2025). These indicators suggest that traders should monitor these levels closely for potential entry points.
In the context of AI-related developments, the impact of China's tariff increase on AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) is notable. At 17:00 UTC on April 11, 2025, AGIX/USD experienced a 4.5% drop to $0.55, while FET/USD fell by 4.2% to $0.78 (CoinGecko, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH remains strong, with a Pearson correlation coefficient of 0.85 for AGIX/BTC and 0.82 for FET/ETH over the past 24 hours (CryptoQuant, 2025). This suggests that AI tokens are closely tied to the broader market sentiment influenced by geopolitical events. Trading volumes for AGIX/USD and FET/USD increased by 110% and 105% respectively, indicating heightened interest in AI tokens amidst market uncertainty (Binance, 2025). The development of AI technologies in China, which could be affected by these tariffs, may further influence market sentiment and trading volumes in the AI-crypto crossover space.
The implications of China's tariff increase on the cryptocurrency markets are profound. Traders are reacting to the news by moving assets away from U.S. dollar-denominated pairs, leading to a spike in trading volumes for other pairs such as BTC/CNY and ETH/CNY. At 15:00 UTC on April 11, 2025, the BTC/CNY pair saw a 2.5% increase in value, reaching 450,000 CNY, while the trading volume for this pair rose by 75% to 18 billion CNY (Binance, 2025). Similarly, the ETH/CNY pair increased by 2.3%, trading at 22,500 CNY, with a volume increase of 65% to 8 billion CNY (Huobi, 2025). This shift suggests a flight to safety towards Chinese assets amid fears of U.S. economic retaliation. On-chain metrics further reveal a 40% increase in transactions on the Bitcoin network, with the average transaction size growing by 25% to 1.5 BTC, indicating large investors are moving their assets (Blockchain.com, 2025).
Technical indicators for BTC/USD at 16:00 UTC on April 11, 2025, show the Relative Strength Index (RSI) dropping to 35, indicating an oversold condition, while the Moving Average Convergence Divergence (MACD) line crossed below the signal line, suggesting bearish momentum (TradingView, 2025). The Bollinger Bands for ETH/USD widened significantly, with the price touching the lower band, signaling increased volatility and potential for a rebound (CoinGecko, 2025). The trading volume for BTC/USD remained elevated at 22 billion USD, and for ETH/USD at 9.5 billion USD, reflecting continued market interest and potential for further price movements (CoinMarketCap, 2025). These indicators suggest that traders should monitor these levels closely for potential entry points.
In the context of AI-related developments, the impact of China's tariff increase on AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET) is notable. At 17:00 UTC on April 11, 2025, AGIX/USD experienced a 4.5% drop to $0.55, while FET/USD fell by 4.2% to $0.78 (CoinGecko, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH remains strong, with a Pearson correlation coefficient of 0.85 for AGIX/BTC and 0.82 for FET/ETH over the past 24 hours (CryptoQuant, 2025). This suggests that AI tokens are closely tied to the broader market sentiment influenced by geopolitical events. Trading volumes for AGIX/USD and FET/USD increased by 110% and 105% respectively, indicating heightened interest in AI tokens amidst market uncertainty (Binance, 2025). The development of AI technologies in China, which could be affected by these tariffs, may further influence market sentiment and trading volumes in the AI-crypto crossover space.
Crypto Rover
@rovercrc160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.