latest Trump-related developments with the crypto market’s current state (as of July 1, 2025):
📰 Trump Tariff Shift Shakes Markets — Crypto Reacts With Volatility
Washington D.C. / July 1, 2025 — Former President Donald Trump, now the Republican presidential nominee, made headlines again this week by signaling a possible reinstatement of broad tariffs on Chinese imports — a move that sent shockwaves through traditional markets and triggered volatility in crypto assets.
🔻 The Tariff Threat Returns Speaking at a campaign rally in Michigan over the weekend, Trump hinted at “reciprocal trade enforcement” that could target over $300 billion in Chinese goods, reviving concerns of a renewed U.S.-China trade war.
Economists warn that such policies could add upward pressure to inflation, just as the Federal Reserve was signaling potential rate cuts. Bloomberg Economics noted that “tariff inflation” could keep summer CPI above 4%, complicating the Fed’s path.
📉 Crypto’s Volatile Reaction Following Trump’s comments:
Bitcoin (BTC) dropped sharply to $106,900, before recovering slightly.
Ethereum (ETH) saw a 2.2% intraday dip, now hovering around $5,880.
Altcoins such as Solana (SOL) and Avalanche (AVAX) saw double-digit swings, as risk-off sentiment hit markets.
Market analysts suggest crypto is caught between two forces:
Inflation hedge narrative resurfaces due to tariff-driven cost hikes.
Risk aversion limits institutional appetite for volatile assets.
📊 What to Watch
The July CPI release (due mid-month) will now be closely scrutinized.
Any further Trump trade rhetoric may continue to fuel short-term crypto swings.
Traders are also eyeing the Federal Reserve's next policy meeting, where hints of inflationary pressure from tariffs could postpone a long-awaited rate cut.
🧠 Expert Take “Crypto thrives on uncertainty — and Trump just added a whole new layer,” said Ava Thompson, macro strategist at Galaxy Digital. “If inflation resurges and the Fed holds ,
