Bitcoin Slips as Trade Deal Progress and Tariff Concerns Weigh on Sentiment

Bitcoin prices slipped on Thursday following comments from U.S. President Donald Trump, who confirmed progress in trade negotiations with China but also warned that new tariffs on major economies would be announced in the coming weeks. The world’s largest cryptocurrency dropped 1.7% to $107,782.20 as of 2:10 ET (06:10 GMT).

Trump’s Tariff Threats Create Investor Caution

President Trump stated on Wednesday that a framework trade “deal” with China was “done,” pending approval from both him and Chinese President Xi Jinping, following two days of negotiations in London. Under the tentative pact, China would resume export licenses for rare earth minerals and magnets, while the U.S. would maintain a 55% tariff on Chinese imports, and China would continue charging 10% on U.S. goods. The agreement also allows Chinese students to continue attending U.S. universities.

However, Trump further stated that he plans to send letters to major economies in the coming weeks, outlining tariff offers with a “take it or leave it” approach. These letters will be sent ahead of a July 9 deadline related to his temporary halt on broader tariffs. Although Trump suggested he is prepared to extend the deadline, he expressed confidence that it won’t be necessary.

Markets reacted cautiously to these developments, viewing the London framework as a limited truce rather than a comprehensive resolution. The uncertainty surrounding prolonged global trade friction weighed on risk sentiment, contributing to the dip in crypto prices.

Investors Await Fed’s Rate Decision Amid Soft Inflation Data

Meanwhile, investors are closely assessing the softer-than-expected U.S. consumer inflation data released the previous day, which has heightened expectations for potential rate cuts by the Federal Reserve later this year. The inflation report has increased bets that the Fed will hold interest rates steady in its meeting next week, which adds another layer of uncertainty to investor sentiment.

Altcoins Follow Bitcoin Lower

The broader cryptocurrency market mirrored Bitcoin’s decline, with most altcoins falling on Thursday amid a risk-off mood.

• Ethereum (Ether) dropped 1% to $2,760.11.
• XRP slid 1.9% to $2.2507.
• Solana fell by 4%, while Cardano lost 5%, and Polygon dropped 1.7%.

Among meme tokens, Dogecoin fell by 4%, and $TRUMP declined by 4.2%.

Conclusion

Bitcoin and most altcoins faced downward pressure as investors reacted to President Trump’s tariff threats and the ongoing uncertainty surrounding global trade dynamics. While the tentative trade framework between the U.S. and China provided initial optimism, the market remains cautious, awaiting further developments in trade talks and the upcoming Federal Reserve interest rate decision. The broader cryptocurrency market continues to show sensitivity to macroeconomic conditions, with altcoins closely tracking Bitcoin’s movements.