Cryptocurrencies experienced a notable upswing this past Sunday as U.S. Treasury Secretary Scott Bessent signaled potential trade agreements on the horizon, just days before the July 9 Liberation Day tariff deadline—a date that’s been marked as crucial in the economic calendar. Bitcoin, the reigning heavyweight of the crypto market, clawed its way past the $109,000 mark, a gain of over 1%, while Dogecoin, a favorite among meme investors, surged by 3%. Meanwhile, XRP and Solana’s SOL token both enjoyed a 2% increase, and Ethereum’s ether wasn’t left out, inching up 1.5% to $2,550, as reported by CoinDesk.
Trade Deals in the Balance
In a candid exchange with CNN, Bessent laid out the administration’s stance: the U.S. is on the brink of clinching several trade deals just before the tariff reprieve, initially set in motion on April 2, comes to a close. “President Trump’s going to be sending letters to some of our trading partners,” Bessent emphasized, hinting at the urgency of the situation. “If you don’t move things along,” he warned, “then on August 1, you will boomerang back to your April 2 tariff level.”
The stakes are high. Should these negotiations falter, the tariffs, which had been placed on a temporary hold, will snap back into place on August 1. This looming deadline has been a key driver in recent market movements, with Bessent noting that some countries have been dragging their feet—a strategy that might not pay off if swift action isn’t taken. As explored in Market Wrap: Crypto Markets Shrug Off New Trump Tariff Threat as July Deadline Looms, the market’s resilience in the face of these threats is noteworthy.
Ripple Effects on Markets
The backdrop to these developments is a landscape that has been anything but steady. When President Trump first unveiled the tariffs on April 2, aiming to recalibrate U.S. trade relationships and squash the trade deficit, markets didn’t react kindly. A 10% base tax on trading partners, with some tariffs climbing to a staggering 50%, led to a market rout. U.S. stocks nosedived, and Bitcoin plummeted to $75,000.
That initial shockwave prompted a hasty 90-day tariff hiatus—a move seemingly designed to soothe frazzled nerves. Since then, the U.S. financial markets have staged a robust comeback. Both the S&P 500 and Nasdaq have outshined their international counterparts, with Bitcoin soaring back over $100,000, a testament to what some are calling U.S. exceptionalism in the financial sphere. For a deeper dive into Bitcoin’s recent performance, see Bitcoin rallies to $109.7K but pro traders question BTC’s price momentum.
Crypto analyst Jane McMillan from CryptoInsights observed, “The market is clearly reacting to the potential for reduced trade tensions. But there’s always an element of unpredictability with geopolitical factors at play.” Her cautionary note serves as a reminder that while optimism is brewing, the road ahead is fraught with uncertainty.
Future Uncertainties
As the July 9 deadline looms, many are watching closely to see whether these potential deals will solidify, potentially sparking further gains in the crypto market. Yet, there’s a palpable undercurrent of skepticism. Could this rally be short-lived if trade negotiations falter? What impact might a return to elevated tariffs have on the delicate balance of global trade and, by extension, the buoyant crypto markets?
As the countdown to Liberation Day continues, the crypto community is abuzz, speculating on how these developments will unfold. One thing is clear: the next few days could be pivotal, not just for U.S. trade policy but for the broader economic landscape—including the ever-volatile world of digital currencies.
The coming days promise to be anything but dull. As traders and investors brace for whatever comes next, the only certainty is that the interplay between politics and markets will continue to keep everyone on their toes.
Source
This article is based on: Bitcoin, Dogecoin, XRP Rise as Bessent Hints at Trade Deals Before Liberation Day Tariff Deadline
Further Reading
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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.
