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Bitcoin Falls as Trump Announces Tariff Plans

Solomon M. by Solomon M.
July 8, 2025
in Bitcoin News
Key Takeaways:
  • President Trump confirms tariff plans impacting global markets.
  • Bitcoin falls by approximately $860.
  • Ethereum drops over 2%, reflecting market concerns.
bitcoin-falls-as-trump-announces-tariff-plans
Bitcoin Falls as Trump Announces Tariff Plans

Bitcoin experienced a price drop on July 7, 2025, shortly after President Donald Trump announced 25% tariffs on imports from Japan and South Korea starting August 1.

Market reactions indicate significant concerns over the announced tariffs’ economic impact, compelling traders to adjust portfolios amid heightened uncertainty.

President Trump stated the imposition of 25% tariffs on imports from Japan and South Korea will commence on August 1. This move seeks to revise trade dynamics without further extending the deadline.

Traders previously were concerned about volatility leading up to the July 9 tariff deadline on Wednesday. It looks like markets are rallying after it was revealed countries will have more time to negotiate before tariffs take effect at the beginning of August. – Jeff Mei, COO, BTSE

The announcement immediately impacted Bitcoin, which saw a ~$860 decrease representing a 0.79% decrease. Ethereum fell over 2%, with Solana and XRP each dropping 1.5-2% in the wake of the tariff fears.

Financial markets faced increased volatility as investors navigated heightened trade tensions. Institutions reconsidered risk exposure, echoing sentiment shifts seen in previous tariff escalations under Trump.

Historical patterns have shown cryptocurrencies, particularly BTC and ETH, acting as “risk assets” during trade disputes, despite inherent volatility rooted in global economic conditions. The upcoming U.S. CPI release might influence Federal Reserve’s policies post-trade tensions, potentially impacting risk assets like Bitcoin.

Disclaimer:

The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.

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