Crypto markets are in turmoil after Trump's new tariff threats, experiencing a 4.5% decline. Not only that, crypto-related stocks and indices have also plummeted. What does the future hold ?
On July 7, President Trump sent tariff letters to 14 countries, imposing rates ranging from 25% to 40%. These decisions quickly impacted the cryptocurrency market, with a drop of 4.5% in total market capitalization in just 24 hours. All ten major cryptocurrencies were in the red, including Bitcoin (-1.56%), Ethereum (-1.89%) and Dogecoin (-4.78%).
Beyond cryptocurrencies, stocks related to this sector also suffered. MicroStrategy and Robinhood shares closed lower, while Bitcoin mining stocks experienced even steeper declines.
But the repercussions didn’t stop there. US stock markets, represented by the Dow Jones, S&P 500, and NASDAQ, also experienced notable declines. This volatility is partly explained by new expectations regarding Federal Reserve decisions.
Indeed, the odds of an interest rate cut by September have fallen from 90% two weeks ago to just 61.9% today. This outlook, combined with the announcement of new tariffs and the negative market reaction, creates an environment of increased uncertainty for investors.
In this context, it’s difficult to predict the future evolution of the cryptocurrency market. With new customs tariffs scheduled for August 1, continued decline cannot be ruled out. Investors will need to navigate these choppy waters with caution.
Bitcoin needs to maintain above $99,000 to sustain a bullish trend. While it filled its CME gap by dropping to $107,400, Bitcoin has a strong probability of targeting the $110,000 to $114,000 zone in the coming days.
“The breakout structure is valid, market data confirms market strength, on-chain behavior is misunderstood, and price action remains bullish. The target remains between $120,000 and $130,000, and the path forward is becoming clearer,” writes DrProfit on X.
According to him, the worst possible scenarios for Bitcoin are already “priced in,” meaning the market has already anticipated these potential scenarios. “I keep repeating that the worst-case scenario, including a potential war, is currently priced in, while the money supply continues to increase ! Bullish months lie ahead for stocks and cryptocurrencies,” he adds.
In conclusion, the coming days will be crucial to determine if the market has properly digested these disturbances and the resurfacing geopolitical tensions.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
