Bitcoin Drops 0.8% as Trump Tariffs Hit Markets

Bitcoin's price experienced a reversal on Monday, slipping below $108,000 during the U.S. session, erasing the modest gains made over the weekend. This shift came as President Trump's tariff policies once again took center stage, impacting investor sentiment. The largest cryptocurrency saw a 0.8% decrease over the past 24 hours, while Ethereum's ether also declined by 0.6%. Smaller cryptocurrencies such as Solana's SOL, dogecoin, and Sui's SUI experienced declines ranging from 1% to 2%. However, XRP outperformed with a gain of more than 2%.

President Trump's actions included setting 25% tariffs on products from Japan and South Korea, effective from August 1. Additionally, he threatened further levies on countries aligning with the BRICS policies, which include Brazil, India, China, and Russia. The White House also announced a delay in the deadline for trade deals from July 9 to August 1. This move was accompanied by a statement from White House Press Secretary Karoline Leavitt, who indicated that more countries would receive letters regarding tariff rates or announcements of trade deals in the coming days.

The impact of these tariff policies was evident in the broader financial markets. The Nasdaq and S&P 500 indexes both saw declines of about 1%, while yields on 10-year U.S. Treasury bonds headed higher, nearing 4.4%. This environment of heightened tariffs and delayed trade deals created a challenging backdrop for investors, contributing to the reversal in Bitcoin's price and the overall decline in cryptocurrency values.