Bitcoin experienced significant fluctuations in recent trading sessions, dipping to a low of $64,300 before recovering to around $65,600. This recent sell-off can be largely attributed to renewed trade tensions ignited by President Donald Trump’s decision to raise global tariffs to 15%. This move comes in the wake of a Supreme Court ruling that annulled a previous set of emergency trade measures, adding further uncertainty to the market.
Following the court’s ruling, which briefly sparked optimism among investors regarding a potential easing of trade conflicts, Trump quickly reinstated higher tariffs, raising the import duties from 10% to 15% with immediate effect. This sudden shift has left investors grappling with unanswered questions, as it remains unclear how these tariffs will be enacted, exacerbating market volatility.
Crypto Markets Take a Hit
The repercussions of these developments have rippled through the cryptocurrency market, leading to widespread losses among major digital assets. Ethereum (ETH) fell by 1.8%, settling around $1,951, which marks a 2.5% decline over the past week. XRP also took a hit, dropping 4.4% over the day and 8.4% on the week to trade at $1.39.
Solana (SOL) didn’t escape the downturn, sliding 3.8% in 24 hours to $83.25. Meanwhile, Dogecoin (DOGE) saw a near 5% drop for the day and a staggering decline of over 11% for the week. Other cryptocurrencies like Cardano (ADA) and Binance Coin (BNB) followed suit, retreating by 4.3% and 2.3% respectively.
The geopolitical landscape also complicates matters, as China is now subjected to the same 15% tariff rate as US allies, adding to the precarious nature of international trade relations. European lawmakers have also expressed reluctance in advancing the so-called Turnberry Agreement, seeking clearer commitments from Washington before proceeding.
Stock Futures Also Slide
The uncertainty has not been confined to the crypto space; US stock futures mirrored the unease with notable declines across the board. Dow Jones futures fell by 0.4%, S&P 500 futures dropped 0.5%, and Nasdaq 100 futures decreased by approximately 0.7% as markets opened.
Stocks ended the previous week with gains, buoyed momentarily by the Supreme Court’s ruling. However, Trump’s weekend announcement on tariffs has swiftly reversed that bullish sentiment. In addition, oil prices fell by over 1% on Monday, after a substantial increase of more than 5% the previous week, with tensions regarding Iran also weighing on investor minds.
On the earnings front, eyes are on Nvidia, which is set to report on Wednesday, alongside Salesforce and Home Depot, the latter two serving as indicators of retail health.
As markets remain highly sensitive to macroeconomic headlines, Bitcoin’s bounce from $64,300 to $65,600 indicates some resilience, yet the overarching influence of trade policy continues to drive sentiment across both digital currencies and traditional financial markets.
