As the tariff war between the US and China escalates day by day, Donald Trump announced yesterday that they will impose a 104% tax on Chinese goods as of noon on Tuesday, April 9, 2025.
China has launched a counter-offensive, describing the US actions as “unilateralism” and “economic bullying”.
At this point, China announced that it will impose 84% tariffs on all imports from the US starting April 10, 2025.
The increasing tariff tension between the US and China is negatively affecting Bitcoin and cryptocurrencies, as the mutual moves of Trump and China are causing sudden declines in BTC.
With Bitcoin’s near-term price action still uncertain due to the macroeconomic uncertainty created by tariffs, former BBC reporter and cryptocurrency investor Glen Goodman shared his thoughts on whether investors should buy the dip following the recent crash.
Speaking to CoinDesk, Goodman said that it doesn’t make sense to buy during sudden and sharp declines.
Don’t Try to Catch a Falling Knife!
Comparing the current situation in Bitcoin to a falling knife, Goodman said that buying the dip means trying to catch the falling knife.
At this point, Glen said that when prices fall suddenly and rapidly, it is risky to try to buy the dip as it can lead to losses.
Glen also advised investors to wait for the market to stabilize before buying and taking any positions in Bitcoin.
Glen warned that any recovery in the current market environment could be a potential “bull trap”, and noted that it makes more sense to wait for the market to stabilize rather than jump in during a bull trap.
It’s Still Early!
As talk of a bear market beginning to spread after the recent declines increased, Goodman also explained his thoughts on the subject.
Stating that it is too early to decide whether the bull market in Bitcoin and cryptocurrencies has ended or not, Goodman stated that Bitcoin’s upward trend has been strong since 2023.
However, according to Goodman, the recent decline has raised questions about whether the uptrend will continue. Glen said that the bear/bull case for Bitcoin can be evaluated in the coming days when more clarity is obtained.
*This is not investment advice.
