Trump’s 30% Tariff on EU and Mexico: Bitcoin, Ether, and XRP React
Cryptocurrency Market Reacts to New Tariffs Announced by Trump
Overview of Market Movements
Major cryptocurrencies, with the exception of XRP, experienced moderate declines following President Donald Trump’s announcement of new tariffs on imports from Mexico and the European Union (EU).
Details of the Tariff Announcement
In a series of letters shared on his Truth Social account, Trump revealed a 30% tariff on these trading partners, set to take effect on August 1. He expressed dissatisfaction with Mexico’s efforts to secure the border and criticized the EU for lacking a reciprocal trade relationship.
Broader Economic Implications
Earlier this week, Trump also imposed tariffs on several other countries, including South Korea, Japan, Canada, and Brazil, alongside a significant 50% tariff on copper. These moves have contributed to increased volatility in various markets, including that of copper.
Cryptocurrency Price Reactions
Bitcoin, the leading cryptocurrency by market capitalization, was trading around $17,400 after Trump’s announcement, reflecting a 0.6% drop from its earlier peak of $18,200 during the European trading session. The digital asset has struggled to maintain levels above $118,000 multiple times since the early hours of Asian trading on Friday.
Ether (ETH), the second-largest cryptocurrency, saw a 1% decrease, trading at $2,930. It had formed an indecisive doji candle pattern on Friday. Other cryptocurrencies, such as Solana (SOL) and Dogecoin (DOGE), fell by over 2%, while Binance Coin (BNB) was down 0.7%. In contrast, XRP showed resilience, gaining 1.78% at the time of reporting.
Market Sentiment and Future Expectations
The recent downturn in prices follows a period of strong bullish momentum earlier in the week, during which Bitcoin surged past the long-standing resistance level of $110,000. Analysts predict that the market may continue to exhibit indecisive behavior over the weekend.
According to the founders of the newsletter service LondonCryptoClub, there are expectations for a tight trading range over the weekend, with a potential surge in buying activity from Asia late Sunday evening, which could push Bitcoin prices above $120,000.
Conclusion
As the cryptocurrency market navigates the implications of new tariffs and fluctuating prices, traders and investors remain cautious yet hopeful for a rebound in the coming days.
