Bitcoin fell below $108K as Trump’s surprise tariff threats sparked global risk-off sentiment
A delayed tariff deadline and fresh BRICS warnings added more confusion to an already nervous market
President Donald Trump’s unexpected tariff threats have shaken more than just diplomatic ties; they’ve rocked global markets, too.
And as the pressure trickles down, Bitcoin [BTC] isn’t looking like the digital gold it’s often claimed to be.
Instead, it’s flinching like any other risk asset.
Bitcoin blinks first as tariff talks spoof investors
Bitcoin’s recent rally came to a sudden halt on the 7th of July, dropping below $108,000 as global markets reacted to renewed trade tensions.
The trigger? President Donald Trump reignited fears of a global trade war by announcing steep new tariffs. He imposed 25% duties on imports from Japan and South Korea, two of America’s allies.
Source: X
Later, Trump expanded the list to include Malaysia, Kazakhstan, and South Africa, with tariffs ranging from 25% to 40%. These moves rattled investor confidence and sparked a wave of risk-off sentiment across global markets.
In response, Bitcoin, often seen as a risk asset, fell sharply, behaving more like a high-beta tech stock amid the uncertainty. However, at press time, BTC regained its stride and was trading at $108,899.
Stocks, crypto, and currencies respond
The fallout from the tariffs was swift and wide-reaching.
Source: TradingView
Bitcoin dropped sharply, mirroring the S&P 500’s steep red candle that same day; a rare moment of synchronized risk-off behavior across asset classes.
Source: TradingView
Notably, Japanese automakers were among the first and biggest casualties, too, with shares of Toyota and Honda tumbling amid fears of retaliatory trade measures.
Meanwhile, the U.S. dollar surged against both the yen and the won, as investors fled to relative safety.
Deadline delayed, but doubt deepens
Though the market dip was relatively mild, its timing – coinciding with the S&P 500’s slump – has analysts warning that Bitcoin is acting less like a hedge and more like an indicator of global risk.
The White House’s decision to push the anticipated tariff deadline to the 1st of August did little to ease nerves.
Instead, the sudden shift, announced by Press Secretary Karoline Leavitt, caused more uncertainty.
Leavitt told reporters,
“President Trump is determined to bring reciprocal balance to trade, and the new timeline ensures our partners have every opportunity to reach fair agreements…”
Trump’s unpredictability on trade, coupled with a fresh threat targeting BRICS-aligned nations, left investors scrambling.
For now, markets remain stuck… waiting, watching, and bracing.
Next: ‘Altcoins are back to following Bitcoin’s lead:’ Is an altseason brewing?
