The cryptocurrency market has experienced a significant slowdown, down 4.5% in the last 24 hours, following the announcement by President Donald Trump new prices targeting several countries.
At the same time, crypto stocks and stocks of bitcoins listed in balance sheet have also undergone notable losses.
Free chain cryptography market in Trump’s latest pricing letters
On July 7, President Trump sent tariff letters to 14 countries, imposing rates ranging from 25% to 40%. South Korea and Japan were the first to receive new letters. Shortly after, he sent opinions almost identical to 12 other countries.
These include Tunisia, Kazakhstan, Serbia, Bosnia, Myanmar, Laos, Bangladesh, Malaysia, Cambodia, Thailand, Indonesia and South Africa.
“The Secretary in the United States of the Treasury, Bessent,” said that more than 100 countries have not responded to the American sales agreements. All these countries should receive pricing letters, ”revealed Kobeissi’s letter.
In letters, Trump has expressed his concern about the trade deficits that the United States has with these countries. He also warned that all reprisal actions would be welcomed with additional tariff increases.
Economist Peter Schiff criticized this decision, declaring that Trump’s letters reflect a fundamental misunderstanding of trade. He argued that prices are not linked to American trade deficits with Japan or South Korea.
“Japan prices on American goods on average less than 2%, and the average for Korea less than 1%. Our trade deficits result from South Korea and Japan by doing more goods than Americans want to buy than the goods we make they want to buy.
Nevertheless, Trump’s tariff taxation has proven to be harmful to the cryptography market. Beincrypto data showed that total market capitalization has dropped 4.5% in the last day. The first ten pieces were in red.
Bitcoin (BTC) fell 1.56% below the $ 108,000 mark. At the time of writing the editorial staff, he negotiated at $ 107,688. Ethereum (ETH) dived from 1.89% to a press time value of $ 2,535. DOGECOIN (DOGE) saw the largest loss of 4.78%.
In addition to the documents, the actions linked to the crypto also suffered. Google Finance Data showed that Microstrategy Class A MSTR closed the market with a drop of 2%, while Robinhood was down 1%. In addition, the stocks of bitcoin minors have experienced larger declines.
Price letters also affected the US stock market. CNN data revealed that the Dow Jones was down 422.17 points, the S&P 500 fell by 49.37 points and the NASDAQ decreased by 188.59 points.
“It’s like watchmaking work: Trump’s” pricing letters “are coming out, and the 10 -year yield is back at 4.40%.
Meanwhile, the drop in crypto and action markets reflects the cases of volatility linked to prices. In April, American-china trade led Bitcoin below $ 80,000, causing massive liquidations.
With the new prices that should be posted on August 1, expecting new decreases is not eccentric. In addition, the low probability of feeding rate reductions could feed the lowering feeling. Beincrypto previously reported that the chances had fallen below 5% for a rate in July.
The pricing letters have now had an impact on the chances of September. According to the CME Fedwatch tool, the chances of a rate drop by September increased to 61.9%, marking a huge drop of 90% only two weeks ago.
All these factors, Trump’s new prices, the negative market reaction and the change in expectations concerning Fed rate reduction, combine to create an environment of increased uncertainty.
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