Crypto Market Crashes Amid Trump’s Threat to Increase Tariffs
Highlights
- Donald Trump has threatened higher tariffs on countries ahead of August 1 deadline.
- Cryptocurrency prices have tumbled amid Trump's threat with leading assets bearing the brunt.
- The US has signed a trade deal with Japan with Trump pushing for more bilateral arrangement in the coming days.
The crypto market is witnessing a significant correction today, led by Bitcoin and the major altcoins including Ethereum. The market is also at risk of a further decline as U.S. President Donald Trump has threatened to raise tariffs if some countries don’t move to make trade deals with them.
BTC, ETH, XRP, SOL Fall Amid Broad Crypto Market Crash
TradingView data reveals that cryptocurrency prices are on a downward spiral over the last day, shedding nearly $40 billion from the global market capitalization. Among the top ten largest cryptocurrencies, Dogecoin took the most hit, losing 6.61% of its value to trade at $0.24, followed by XRP with a near 6% loss.
Solana currently trades at $190, falling by 4.75% over the last day, while Cardano is nursing a decline of 5.38% to trade at $0.8. While Ethereum has recorded a 2.08% loss in 24 hours, Bitcoin is holding its own with only a 0.55%, trading above the $118,000 mark.
A glance at the chart reveals that HBAR, LINK, XLM, and SHIB have tumbled by 6.22%, 5.25%, 5.19%, and 6% respectively. Despite the decline of the broader cryptocurrency market, BNB is bucking the trend to set a new all-time high of $809. BNB coin price hit $800 amid heightened accumulation by institutions as experts turn their gaze to $1,200.
At press time, the global cryptocurrency market capitalization is pegged at $3.87 trillion while daily trading volumes sit at $195 billion, a 12% decline over the last day.
Donald Trump Threatens Higher Tariffs
The broad crypto market decline comes amid Trump’s threat to increase tariffs on countries that refuse to “open their markets.” The president disclosed via a Truth Social post that he will impose higher tariffs on nations that fail to remove trade barriers, impeding U.S. companies from selling their goods.
Trump also cited the trade deal with Japan, which both countries reached earlier today. The U.S. had earlier planned to impose a 25% tariff on Japan but has now reduced it to 15% under the deal.
Despite the president’s tough stance, Treasury Secretary Scott Bessent confirmed in a Fox interview that they are likely to strike more trade deals soon, which is a positive for the crypto market.
One of these deals could include one with the European Union (EU). As CoinGape reported, the U.S. and the EU are nearing a trade deal that would lower tariffs on goods from the region to 15% from 30%. Bitcoin briefly rebounded above $118,000 on the back of the news.
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