Following US President Donald Trump’s announcement of bilateral tariffs on April 2nd, coinciding with Independence Day, Bitcoin saw a sharp decline in price, reaching $82,000 despite the sell-off in the broader US stock market. This came as China reacted to the escalating trade tensions by imposing new tariffs on goods from the United States, further contributing to a climate of heightened risk aversion in Asia. The impact on Bitcoin is particularly noteworthy given its strong correlation with risk appetite and global economic instability. Experts point to potential retaliation from China, as its response to these tariffs could significantly affect both global markets and cryptocurrencies such as Bitcoin and other digital assets. 1. **Chinese Countermeasures:** China’s response, which could range from currency devaluation to trade barriers, is considered critical for the future of the market. If China chooses to devalue the yuan, it would make Chinese goods more competitive globally. However, this strategy also carries the risk of disrupting foreign exchange transactions and potentially destabilizing financial markets. 2. **Death Cross Signal:** The Bitcoin price experienced a notable downturn after Trump’s announcement, with its 50-day simple moving average (SMA) potentially crossing below its 200-day SMA. This is known as a