Trump’s Tariff Imposition Weakens Cryptocurrency Market
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.
An Environment of Uncertainty Due to Trump : Where Could the Market Go ?
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.
Is the Worst Behind Us ?
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.
