Currently, serious uncertainties abound in the crypto market with potential threats of shading the investment environment even further downward, as China and the EU announce reciprocal duties on US goods. According to select observations, the market may fall further, with Bitcoin leading the way down, but then again, some others suggest the possibility of a bottom here, regardless of the lingering trade war.

Retaliatory Tariffs: The Next Scenario in the Crypto World

The announcement of retaliatory tariffs on US goods by China and the EU may translate into further downsizing of the crypto market, whereby Bitcoin might cost lower. All this is pending a CNN report in which China has placed an 84-percent tariff on US imports effective from April 10.

The EU has proclaimed a 10- to 25-percent tariff on US imports, coming into force on April 15. As reported, another round of heavy selling in the crypto market was registered yesterday after the 104% tariffs on China were declared by the US, taking effect today.

The likes of crypto analyst Rekt Capital have weighed in on how Bitcoin might crash lower short-term into this war of tariffs. On an X post, Rekt Capital noted how BTC price corrective move occurred after higher month-to-date price wicking during early March weekly lows.

He articulated that having cemented rejection at the red area of $80,000, the price now drops into a volume gap of $71,000-$83,000 to fill this market inefficiency.

On the other hand, crypto analyst CrediBULL Crypto noted the BTC could purposefully engulf the liquidity above between $69,000 and $74,000 higher timeframe demand.

Bullish Case For The Market

Market specialist Anthony Pompliano again has raised the possibility of the US Federal Reserve intervening in the tariff war with an announcement on an emergency cut rate. He has asserted that the rise in the 10-year yield is apparently forcing the Fed’s hand toward action in emergency modality.

Fed Chair Jerome Powell may announce an emergency interest rate cut due to the ongoing Trump tariffs. Such a case would be positive for the crypto market since coupled with the easing of monetary policies by the US Central Bank, liquidity would flow more toward crypto assets.

US President Donald Trump has also just said it is a great time to buy, which could represent the bottom for the market. Crypto analyst MikyBull Crypto pointed out that the president made the very same remark on two previous occasions, which marked the bottom.

The first time was in October 2018, and the market hit the bottom two and a half months later. The second time was in March 2020, and the market bottomed within one to two weeks.