Yigit Taha OZTURK 
Rising tensions between the United States and China have pushed crypto and tech stocks into a new phase of the global trade war, market analysts warn.
Thin Confidence Drives Volatility in Risk Assets
On April 15, the White House announced fresh tariffs on Chinese imports up to 245%, including:
- A 125% reciprocal tariff
- A 20% fentanyl-related import tariff
- Section 301 tariffs ranging from 7.5% to 100%
Aurélie Barthere, principal analyst at Nansen, said this escalation is targeting high-value sectors like Tech and Pharma, increasing pressure on correlated assets like Bitcoin (BTC) and US equities.
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“Unless a diplomatic breakthrough occurs, we’ll see continued risk-off sentiment among high-beta assets,” she said.
Crypto Reacts to Macroeconomic News
Since November 2024, crypto and US equities such as SPX and Nasdaq have shown strong downside correlation, especially amid macroeconomic uncertainty.
Nansen estimates a 70% chance of markets bottoming out by June 2025, dependent on how tariff negotiations progress.
China has appointed Li Chenggang, a seasoned official from the Trump era, as its chief trade negotiator. Reuters described him as an “intense” figure familiar with US negotiations.
Eyes on Powell’s May 6 FOMC Speech
Amid inflation concerns and trade risks, the spotlight is on Federal Reserve Chair Jerome Powell ahead of the FOMC meeting on May 6.
“A hawkish tone may push Bitcoin and other risk assets down again,” said Bitfinex analysts, adding that recent rebounds in altcoins could reverse without macro clarity.
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