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Highlights
- The crypto market, led by Bitcoin risks another drop as Trump Tariffs deadline approaches.
- Bitcoin dropped to an intraday low of $106,400 as Trump ended trade talks with Canada.
- Bitcoin's correlation with the S&P 500 has dropped amid this development.
The crypto market looks shaky at the moment as crypto assets, including Bitcoin, continue to trade sideways. This development comes amid Trump’s announcement that he has ended trade talks with Canada as the tariffs deadline approaches.
Crypto Market Trades Sideways As US Ends Discussions With Canada
CoinMarketCap shows that the crypto market rally from earlier in the week has stalled as Trump tariffs begin to take centre stage again, with the trade deal deadline approaching. Specifically, the Bitcoin price has dropped to an intraday low of $106,400, following a failed retest of the $108,000 level.
Bitcoin’s drop to the intraday low came following Donald Trump’s announcement that they had ended trade discussions with Canada. In a Truth Social post, the president stated that they are terminating all discussions with their North American neighbor, effective immediately, after Canada imposed a Digital Services Tax.
The flagship crypto is now struggling to reclaim the $107,000 level after the drop following Trump’s announcement. The Ethereum price is also down in the last 24 hours. Altcoins such as Solana, XRP, AND BNB are also down during this period.
As CoinGape reported, significant crypto market volatility could be on the horizon as the 90-day tariff pause deadline ends on July 9. The US has yet to reach trade deals with several countries, including India, South Korea, and the EU.
However, Trump and the White House have made light of the deadline. In his latest press conference, the president said that he could extend or shorten the pause. Meanwhile, according to a Bloomberg report, the EU and the US are confident that they can reach a trade deal before the July 9 deadline.
While the crypto market remains on edge, the S&P 500 looks unfazed, having rallied to a new all-time high (ATH) today. Both the crypto and stock markets witnessed significant declines when Trump first announced the reciprocal tariffs in April earlier this year.
IntoTheBlock data shows that Bitcoin’s correlation with the S&P 500 has dropped to 0.46. This explains why crypto prices haven’t rallied along with the US stocks.
Market Receives Boost With Rate Cuts Optimism
Traders are optimistic about two rate cuts this year, which could provide a boost for the crypto market. CME FedWatch data shows that there is a 76.1% chance that the Fed will cut rates to between 400 and 425 basis points (bps).
A CoinGape market analysis also noted that the Bitcoin price is eyeing a rally to $118,000 as Fed rate cuts in September soar. The broader market is expected to rally as BTC makes new highs.
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