Bitcoin has drastically fallen below $118,000 following Trump's announcement of a 30% tariff on both the EU and Mexico. The flagship cryptocurrency had reached $118,200 today, but now it seems likely to hit new daily lows after this announcement.
In a series of posts on Truth Social, the president revealed trade letters he sent to both regions, informing them of the 30% tariff on their products entering the U.S. These tariffs will take effect on August 1, just like the other tariffs Trump recently imposed on other countries, which generated a bearish sentiment in the price of BTC.
On July 7, Trump imposed a 25% tariff on South Korea and Japan. That same day, he also sent trade letters to another 12 countries, imposing double-digit tariffs on them. The price of BTC fell below $108,000 that day.
However, curiously, the flagship cryptocurrency successfully recovered and reached a new all-time high (ATH) on July 9, surpassing $112,000 for the first time in history. Since then, Bitcoin has continued to rise and now boasts a current ATH of $118,800. The breakout above $112,000 occurred on the same day Trump sent trade letters to Iraq, Moldova, the Philippines, Algeria, and Libya, imposing tariffs on exports from these countries.
However, Trump's tariffs remain a bearish factor for the price of BTC, considering that this development could trigger a trade war between the U.S. and these countries. The U.S. president has already threatened to retaliate if any of these countries decide to further increase their tariffs on American products.
