This Week in Crypto News: (April 7–13, 2025): Bitcoin Holds the Line Amid Trade War Turmoil

The second week of April has been tumultuous for the cryptocurrency markets, influenced by escalating trade tensions, significant market sell-offs, and notable regulatory developments. From President Donald Trump’s tariff escalations to China’s economic countermeasures, the crypto landscape is navigating a complex web of geopolitical and economic factors.

Escalating Trade Tensions Impact Global Markets

President Donald Trump intensified the trade war rhetoric by imposing a sweeping 34% tariff on Chinese imports, raising the average U.S. duty on Chinese products to about 70%. This move has significantly pressured China’s export-reliant economy, prompting Beijing to expedite efforts to boost domestic consumption.

In retaliation, China announced a reciprocal 34% tariff on U.S. goods, deepening the trade standoff. To counter the economic impact, Beijing is reportedly considering front-loading monetary stimulus measures, including potential cuts to policy interest rates and increased fiscal spending.

Crypto Market Experiences Significant Sell-Off

The crypto market faced a severe downturn this week. Bitcoin (BTC) fell below $75,000, marking a significant decline. Major altcoins experienced even steeper losses:

• XRP and Solana (SOL) both plunged over 20%, breaching critical support levels.
  
• Dogecoin (DOGE) also saw a sharp decline, reflecting the broader market’s bearish sentiment.

Analysts attribute this sell-off to a combination of macroeconomic uncertainties, aggressive liquidations nearing $1 billion, and the recent tariff measures by President Trump, which have prompted investors to seek safer assets.

Bitcoin Futures Reflect Bearish Sentiment

CME’s bitcoin futures, often viewed as a proxy for institutional activity, gapped lower following President Trump’s statement ruling out a trade deal with China. The April futures contract opened at $79,590, down 5.6% from the previous close, and quickly descended to $76,800. This movement indicates a bearish outlook among institutional investors in response to escalating trade tensions.

China’s Economic Countermeasures

In response to the heightened tariffs, Chinese policymakers are preparing “extraordinary efforts” to mitigate their economic impact. Measures under consideration include:

• Monetary Policy Easing: Potential cuts to policy interest rates and adjustments to reserve requirement ratios.
• Fiscal Policy Adjustments: Allowing for a higher budget deficit and issuing special treasury bonds.
• Stimulating Domestic Consumption: Initiatives to boost consumer spending and stabilize capital markets

These actions aim to counteract the economic slowdown induced by the trade tariffs and support China’s growth targets.

Regulatory Developments in the U.S.

Amidst the market turmoil, the U.S. House of Representatives released a bill aimed at reducing systemic risks associated with stablecoin usage. The proposed legislation seeks to enhance oversight of stablecoin issuers and establish clearer compliance frameworks for dollar-pegged digital assets. This move has been generally welcomed by the crypto industry, particularly by platforms advocating for regulated growth.

Additionally, the Senate Banking Committee held a hearing to evaluate the nomination of Paul Atkins as the next Chair of the Securities and Exchange Commission (SEC). Atkins, who reportedly holds up to $6 million in crypto-related assets, could influence the SEC’s stance on digital assets toward a more innovation-friendly approach, though concerns about potential conflicts of interest have been raised.

Ethereum’s Pectra Testnet Launches

Ethereum’s development progressed with the launch of the final “Pectra” testnet on the Hoodi network. This milestone sets the stage for upcoming upgrades aimed at increasing transaction throughput, improving decentralization, and enhancing validator efficiency. The Pectra upgrade includes improvements to the peer-to-peer networking layer and expands Ethereum’s ability to support rollups, a crucial scaling solution.

Decentralized Autonomous Organizations (DAOs) in Focus

Several major DAOs engaged in key votes and discussions:

• dYdX DAO: Considered allocating $10 million to fund top-performing traders on its platform to attract more volume and elite talent.
• Venus DAO: Debated acquiring a 33% stake in Thena.fi for $4.5 million, aiming to become a DeFi “super app” on the BNB Chain.
• Balancer DAO: Discussed launching an Alliance Program to share revenue with key ecosystem partners, an initiative that could improve alignment across the DeFi landscape.

These initiatives highlight the evolving nature of decentralized governance and strategic planning within the crypto ecosystem.

Coming Soon: Our Expert Market Analysis

📈 Stay tuned! We’ll soon be publishing on the Xcoins Blog section a comprehensive market outlook prepared by our in-house crypto expert. This special report will dive deep into the current technical setup of Bitcoin and other leading cryptocurrencies, exploring multiple scenarios for price action in the weeks ahead.

If you’ve been wondering whether we’re headed for a deeper correction or a bounce-back opportunity — this upcoming breakdown is for you.

Make sure you’re subscribed to our Telegram Channel here to make sure you do not miss out on any news!

Looking Ahead

As the crypto market continues to navigate a complex landscape shaped by geopolitical tensions, economic policies, and regulatory developments, investors and participants should remain vigilant. Key areas to monitor include:

• Further Developments in U.S.-China Trade Relations
• U.S. Regulatory Actions on Stablecoins and Market Oversight
• Progress and Feedback from Ethereum’s Pectra Testnet
• Continued DAO Governance Proposals

Final Thoughts

Crypto continues to mature in an environment that’s anything but predictable. From international diplomacy to Capitol Hill, the events shaping the world are increasingly intersecting with the evolution of digital assets. While the broader market has paused its rally for now, innovation in infrastructure, regulation, and use cases continues at full speed.

Stay sharp, stay informed — and remember to invest wisely and protect your assets during these uncertain times.

To stay up to date on all things crypto, follow Xcoins on X, Linkedin and Telegram.