#TrumpTariffs

Cryptocurrency markets brace for the impact of Trump's tariffs.

Cryptocurrency markets are on edge as the deadline for President Trump's tariff ultimatum approaches. New agreements should be reached by July 9; otherwise, import tariffs ranging from 10% to 70% will come into effect on August 1.

Market reactions have already begun. Asian stocks plummeted, followed by European indices. Industrial sectors led the sell-off, reflecting concerns over supply chain disruptions and margin pressure. Analysts warn that the inflationary effects of higher import costs could reverse fragile disinflationary trends worldwide. Even modest tariff increases could permanently raise production costs, pushing up prices in retail sectors.

The American retail sector is also sounding the alarm. The National Retailers Association estimates that every 10% increase in parts costs could raise consumer prices by 4%.

Cryptographic assets, often viewed as macroeconomic risk instruments, are unlikely to escape the turbulence. The price of bitcoin showed early signs of strain, falling below key support levels amid market uncertainty. While proponents argue that bitcoin can serve as a hedge during instability in fiat currencies, the current backdrop of potential global stagflation—rising prices combined with a slowdown in trade—could weaken investor appetite across the board. Some analysts warn that if global markets spiral downwards, bitcoin may lose its psychological floor of $100,000, triggering a broader altcoin retreat.

Cryptocurrency investors are now watching not only price charts but also diplomatic calendars. The next few weeks could set the tone for the rest of the year—both in traditional and digital markets. The outcome of tariff negotiations will significantly impact market sentiment and may determine the trajectory of cryptocurrency prices in the near future.