Crypto Dips as Trump Rejects Extending Tariffs Deadline

Crypto Dips as Trump Rejects Extending Tariffs Deadline

While awaiting the tariff discussion by July 9, the United States President, Donald Trump, has ruled out extending it. In the past few weeks, this decision has affected the cryptocurrency market, with the leading cryptocurrencies seeing significant falls.

Tariff Moratorium and Trade Agreements

The extension of the tariff moratorium presses forward for trade agreements with several countries, including Japan, with the threat to raise tariffs if discussion fails.

One of Trump’s strategies to keep a healthy relationship with foreign countries is to use tariffs to gain better trade conditions.

Trump’s administration has been focused on using tariffs to gain better trade conditions with foreign countries. This relationship has had a great impact on Japan, and as such, the two nations have failed to strike a comprehensive trade agreement.

Impact on Global and Crypto Markets

This tariff threat by President Trump has a significant effect on global markets, and as investors wait to see how far it goes, there is a major concern about the possible economic ramifications.

This has made the cryptocurrency market collapse, with major currencies like Bitcoin (BTC) and Ethereum (ETH) losing value, reacting to the risk of economic turmoil.

Recent Cryptocurrency Performance

Bitcoin and Ethereum have experienced significant losses in the last few days. In the last couple of days, BTC dropped by more than 1.5%, while ETH dropped by about 4%. Concurrently, the price of Ripple (XRP) fell to $2.17, down 5.24%, and Dogecoin fell by 3.5%, trading around $0.75.

Macroeconomic Factors Driving Market Volatility

Trade agreements and geopolitical dangers are examples of macroeconomic factors that may lead cryptocurrency markets to be volatile. President Trump has heightened market concern about the macroeconomic repercussions of tariffs by ruling out the idea of postponing them.

As a result, the persistent uncertainty surrounding Trump’s tariff strategy has increased pressure on the cryptocurrency market. With the threat of increased tariffs on the horizon, the market may suffer additional volatility in the coming weeks.

Trade Treaty Uncertainty and Delays

While Trump has regularly threatened to slap greater tariffs on countries that do not achieve satisfactory accords, the United States has yet to obtain many of the trade treaties it has been negotiating. Only a few agreements have been achieved thus far, with the United Kingdom and China standing out. However, these agreements have not entirely addressed the trade challenges that Trump has raised.

Trump’s treasury secretary, Scott Bessent, admitted that the US government may not achieve the objective of getting 90 trade agreements in 90 days. The lack of substantive agreements has raised concerns that the discussions would extend past the July 9 deadline. Other observers believe that discussions may linger until early September, if they are resolved at all.

Conclusion: Crypto Market Faces Prolonged Uncertainty

This delay of trade agreements has not only affected global trade ties, but it has also contributed to the current financial turmoil. The outcome of such conversations is currently the focus of the crypto market’s investors, who must continue to face the uncertainty.

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