#TarriffsPause
Market Response & Price Action
• Bitcoin declined below $113,000 after Trump's reciprocal tariffs took effect August 1, showing immediate negative reaction
• Crypto-focused stocks suffered sharper losses: Coinbase (-16%) and MicroStrategy (-8.7%)
• Overall market cap remained resilient at $3.75T (up 0.41% as of August 6), indicating selective strength in certain digital assets
• Technical support established around $107,000-$108,000 level, with resistance at $115,000
Policy Implications & Market Drivers
• 50% copper tariffs potentially impact mining operations and hardware supply chains
• New automotive industry restrictions contribute to broader economic uncertainty
• Parallel development of clearer crypto regulatory frameworks under Trump creates counterbalancing positive catalyst
• Senate-backed stablecoin legislation signals potential institutional adoption pathway despite trade tensions
Strategic Considerations
• Monitor copper and automotive ETFs for cross-market correlation signals and supply chain impacts
• Consider 10-15% allocation to stablecoins as volatility hedge during policy implementation period
• Watch for institutional inflows into regulated crypto products as regulatory clarity improves
• Evaluate support/resistance levels ($107K-$115K range) for short-term trading opportunities
• Balance short-term defensive positioning with strategic accumulation as regulatory frameworks solidify.