Americas Crypto Daybook: Bitcoin Faces Ongoing Downside Risks Despite China's Willingness to Engage in Talks

By Omkar Godbole (All times ET unless otherwise stated) The markets remain intensely focused on the escalating trade tensions between the U.S. and China, with both countries making headlines. Bitcoin's value dropped below $75,000 during the Asian morning session, while S&P 500 futures experienced a 2% decline following the U.S. decision to increase the total tariff on the world's second-largest economy to 104%. The Australian dollar, a commodity currency sensitive to China, hit a five-year low of 0.5913 against the U.S. dollar, and the volatile U.S. Treasury market posed a threat to USD liquidity. Market sentiment saw a slight improvement after China's State Council Information Office released a white paper stating Beijing's willingness to communicate on key issues, without mentioning new retaliatory taxes on U.S. imports. However, this optimism was short-lived, as the Ministry of Finance later increased tariffs to 84% from 34%, causing BTC to plummet back below $76,000 after a brief rally to around $77,000. The sustainability of the recovery remains uncertain, given China's firm stance beyond the headlines, suggesting the government is unlikely to back down anytime soon. According to the document, China will not be intimidated and expects the U.S. to demonstrate respect and equality if it wishes to resolve the issue. The country has vowed to take measures to protect its rights and interests. Furthermore, persistent volatility in the bond market, triggered by the unwinding of carry trades and concerns about sticky inflation, may hinder a sustained recovery in risk assets. Many observers, including economist Nouriel Roubini, believe that markets are overly optimistic about the prospect of aggressive Fed easing, and central bank support will only be provided after President Donald Trump moderates his rhetoric. Meanwhile, Bank of Japan Governor Kazuo Ueda stated that interest-rate hikes will continue if the economy improves as expected, emphasizing the need to be vigilant about trade tensions. In the broader cryptocurrency market, BlocScale, a launchpad for onboarding projects and community-driven token introductions to the XRP Ledger, continues to generate interest, with strong demand for the seed sale of its native token BLOC. "With over 35% of the seed sale allocation already claimed, BlocScale Launchpad is gaining significant traction from early-stage investors, developers, and XRP enthusiasts looking to be part of something groundbreaking," the company stated. The TRUMP token, associated with President Trump, has reached record lows near $7.5 following massive selling by whales earlier this week. The token has lost 90% of its value from its record high, with a $360 million unlock scheduled for later this month. Investors are advised to remain cautious. Key Events to Watch: Token Events Conferences Token Talk By Shaurya Malwa Derivatives Positioning Market Movements Bitcoin Statistics: Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether UPDATE (April 9, 11:38 UTC): Adds China's tariff retaliation in the third paragraph.