Bitcoin and the broader cryptocurrency market experienced a downturn on Monday, with the leading digital asset slipping beneath the $108,000 mark. This decline unwound gains made over the weekend, as former President Donald Trump’s tariff policies once again took center stage, clouding the market’s outlook. As of Monday afternoon in the United States, Bitcoin was trading at approximately $107,700, down 0.8% from the previous day.
Tariffs Stir Market Uncertainty
The weekend rally in crypto prices hit a speed bump as news broke of Trump’s latest tariff maneuvers. The White House confirmed that tariffs of 25% would be imposed on goods from Japan and South Korea starting August 1. Further complicating matters, Trump’s social media missives revealed additional levies: 25% against Kazakhstan and Malaysia, 30% targeting South Africa, and a hefty 40% for Myanmar and Laos. In a move that rattled global trade relations, Trump hinted at potential tariffs on nations aligning with the BRICS—a coalition including Brazil, Russia, India, China, and South Africa. This follows a pattern of market volatility and political tensions, as discussed in our recent article on Trump’s $5 Trillion Bill.
Market analyst Jenna Li noted, “The crypto market thrives on a certain level of predictability, and these tariff changes inject a dose of uncertainty that investors dislike. Bitcoin’s slip isn’t just about tariffs, but they certainly add to the risk-off sentiment.”
Ripple Bucks the Trend
While Bitcoin and other cryptos like Ethereum’s ether (down 0.6%) and Solana (dropping 1-2%) faltered, Ripple’s XRP emerged as an outlier, gaining over 2%. This divergence from the broader market trend highlights the idiosyncratic nature of digital assets, where individual tokens can react to specific catalysts.
Some analysts speculate that ongoing legal developments in Ripple’s court battles might be providing a tailwind, though the specifics remain murky. In contrast, meme coin dogecoin and newer entrants like Sui’s SUI couldn’t escape the gravitational pull of bearish sentiment.
A Global Chess Game
The tariffs are part of a broader geopolitical chess game, with Trump leveraging trade as a tool for international negotiations. This strategy, however, has not been without its critics. “Trump’s tariff threats are a double-edged sword,” commented economic strategist Mark Nguyen. “While they might bring short-term negotiation leverage, they risk sparking trade wars that could hurt global economic growth—a factor that’s weighing on both traditional and digital markets.” For more insights on how the crypto markets are responding to these threats, see our Market Wrap.
The ripple effects of these policies were felt beyond crypto, with the Nasdaq and S&P 500 indexes each shedding about 1% on Monday. Meanwhile, yields on 10-year U.S. Treasury bonds edged closer to 4.4%, as investors sought refuge in perceived safe-haven assets.
Looking Ahead
As the calendar edges toward Trump’s self-imposed August 1 deadline for new trade deals, market participants are bracing for further announcements. The administration’s plans to send more letters detailing tariff rates or unveil trade agreements in the coming days add another layer of complexity to the already volatile market landscape.
For now, investors are left to ponder the potential long-term impacts of these policies. Will these tariffs merely be a temporary blip, or do they signal a deeper shift in global trade dynamics? And how will this affect the trajectory of the crypto market, which thrives on innovation and borderless transactions?
As July unfolds, all eyes are on the geopolitical stage, with traders and analysts alike keen to discern any signals that might illuminate the path forward. While uncertainty reigns supreme, one thing is clear: the interplay of politics and crypto is a narrative that isn’t going away anytime soon.
Source
This article is based on: Bitcoin Slips Below $108K, Erases Weekend Gains as Trump Ramps Up Tariffs
Further Reading
Deepen your understanding with these related articles:
- Why Bitcoin Price Might Drop Below $105,000 in the Coming Days
- Bitcoin Market Fatigue Grows: Could BTC Price Drop Below $100,000?
- Bitcoin Price Shoots Toward $110K while Fartcoin and BONK Lead Meme Coin Gains: Market Watch
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
