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Bitcoin experienced a slight decline on Tuesday, dropping 0.5% to $108,224.20, as new U.S. tariffs announced by President Donald Trump dampened investor risk appetite. The cryptocurrency has remained range-bound in recent sessions, with traders reluctant to make large bets amid growing uncertainty about the global economic landscape.
Trump’s Tariff Announcement and Delayed Deadline
On Monday, U.S. President Donald Trump began sending tariff letters to 14 countries, including major U.S. trading partners like Japan and South Korea, as well as smaller exporters such as Serbia, Thailand, and Tunisia. The letters outlined the imposition of sharply higher tariffs, ranging from 25% on goods from Japan and South Korea to as much as 40% on goods from other nations.
While these tariffs were initially set to take effect on July 9, Trump signed an executive order on Monday, pushing the deadline to August 1. Despite the extension, Trump indicated that the new deadline was “not 100% firm,” leaving the door open for alternate proposals from trade partners.
The continued uncertainty surrounding trade policy has contributed to caution in the market. Cryptocurrencies, which tend to rely on investor sentiment and broader risk appetite, have struggled to find clear direction amid this volatility. As a result, demand for Bitcoin and other cryptocurrencies has been tempered.
Impact on the Cryptocurrency Market
The news surrounding tariffs and trade negotiations has created a choppy trading environment for cryptocurrencies. While Bitcoin has shown limited movement, most altcoins also experienced small declines in today’s session. Ethereum, the world’s second-largest cryptocurrency, fell 0.4% to $2,554.09, while Solana and Cardano dropped by 1.1% and 0.8%, respectively.
In contrast, XRP gained 0.5% to $2.269, and Polygon added 1.5%, bucking the overall downtrend.
Looking Ahead: “Crypto Week” and Regulatory Developments
Investors are now focusing on “Crypto Week,” which begins on July 14, when U.S. lawmakers are expected to push forward with key regulatory bills that could have a significant impact on the cryptocurrency market. Among these bills are the CLARITY Act, the Anti-CBDC Surveillance State Act, and the GENIUS Act, which aim to regulate digital assets and address concerns about cryptocurrency surveillance and central bank digital currencies (CBDCs).
The outcome of these legislative efforts could provide further clarity on the future regulatory landscape for cryptocurrencies, potentially influencing market sentiment in the coming weeks.
Conclusion
The uncertainty surrounding U.S. trade tariffs, combined with a shifting deadline and ongoing regulatory developments in the cryptocurrency space, has kept markets in a cautious, range-bound state. As investors wait for further clarity on trade talks and regulatory measures, Bitcoin and altcoins are likely to continue facing a volatile environment.
