Trump's Tariff Threats Spark 4% Ethereum Drop, 1.5% Bitcoin Decline

President Trump's recent tariff threats have sent shockwaves through global financial markets, causing a significant downturn in various asset classes, including major cryptocurrencies. Trump's firm stance on tariffs, particularly his refusal to postpone the looming deadline on the 9th of July, has disrupted the earlier stability in financial markets. His readiness to enforce increased duties on several countries, including key economic partner Japan, has led to a decline in investor confidence.

Following his remarks aboard Air Force One, U.S. equities saw an immediate downturn, with the S&P 500 shedding points amid growing investor unease. The crypto market mirrored this turbulence, as uncertainty surrounding international trade talks prompted a sell-off. Bitcoin [BTC] slipped by over 1.5%, while Ethereum [ETH] saw a sharper 4% decline. Altcoins faced steeper losses, with Ripple [XRP] slipping to $2.17, down 5.24%, while Dogecoin [DOGE] declined 3.5% to around $0.75. Despite the downturn, recent market signals indicate a cautious recovery is taking shape.

Trump's tough trade talk has also sparked mixed reactions within the community. One user expressed surprise at Trump’s remarks, noting the potential for market crashes and economic downturns. In contrast, Trump struck a more hopeful tone regarding a potential agreement with India, suggesting that negotiations with India may follow a distinct path, possibly reflecting strategic considerations or mutual interests that set it apart from the broader trade disputes currently unfolding.

Amid ongoing uncertainty, recent data reveals that over 91% of Bitcoin holders are currently in profit, highlighting a strong underlying bullish sentiment despite short-term volatility triggered by tariff-related tensions. Meanwhile, fewer than 2% of BTC holders are currently at a loss, suggesting growing confidence in a possible price recovery. Robert Kiyosaki, author of “Rich Dad, Poor Dad,” has characterized such dips in Bitcoin’s value following Trump’s tariff announcements as not a setback but a discounted buying opportunity, hinting at confidence in BTC’s long-term trajectory even amid geopolitical uncertainty.