Bitcoin, Ethereum, and most altcoins are down amid an unprecedented US tariff hike on China.

Crypto markets are still reeling from the latest US tariff hike. On Tuesday, April 8, the White House confirmed that the tariff on all goods from China will increase to 104%, effective on April 9, 12:01 AM, Eastern Time.

Shortly after this announcement, Bitcoin (BTC) dropped to a daily low of $76.508, while Ethereum (ETH) bottomed at $1.454. The drop was likely due to fears of the negative effects these unprecedented tariffs would have on the global economy.

The White House’s decision came after China failed to respond to Donald Trump’s ultimatum. Namely, the U.S. president threatened an additional 50% tariff hike if China did not revoke its 34% retaliatory tariffs on U.S. goods on April 8.

What tariffs mean for Bitcoin and crypto

Several analysts have weighed in on the effects that the U.S.-China trade war would have on crypto markets. For one, Nansen’s analyst Aurelie Barthere called the escalation a “worst case scenario” for risk assets, including crypto. According to Barthere, escalating tariffs hurt economic growth in every country, bringing a “global growth shock.”

This would be a particularly negative scenario for risk assets, as these assets heavily rely on growth to boost their inflated valuations. However, some analysts dispute this take, at least for Bitcoin. According to BitMEX co-founder Arthur Hayes, the escalating trade war with China could be a catalyst for Bitcoin.

Hayes predicts that a trade war will likely impose inflationary pressures on the yuan. This could lead Chinese investors to turn to Bitcoin as a safe haven. A similar scenario has happened before, and boosted Bitcoin’s price.

So far, it is not clear what direction the White House will take on tariffs in the future. On Polymarket, the chances of Trump reducing a majority of the tariffs by July fell to 50%, from a high of 64% on April 7.