Bitcoin’s value slipped slightly on Monday as renewed global trade tensions triggered by Donald Trump’s new tariff threats cast a shadow over risk assets. While the cryptocurrency remains within its broader range, analysts suggest that escalating protectionism and market volatility could influence demand patterns in the short term.
Bitcoin dips amid global jitters
Bitcoin fell by approximately 1.2% in early Monday trading, dipping below $60,000, as broader risk markets reacted to Trump’s announcement of a sweeping 30% tariff on all European Union imports starting 1 August. Although digital assets are often viewed as independent of traditional macroeconomic forces, sudden shifts in global trade policy tend to ripple across investor sentiment, affecting appetite for both equities and crypto.
The decline was modest compared to more pronounced falls in equities, but it highlighted the extent to which Bitcoin has become entwined with broader financial market trends. As institutional participation in crypto markets has increased, Bitcoin’s behaviour is now more correlated with mainstream risk assets than in earlier cycles.
Tariffs and inflation expectations
Analysts noted that Trump’s tariff proposal could stoke inflationary pressures by raising the cost of imported goods, especially in sectors such as autos, industrials and consumer electronics. For traditional investors, this raises uncertainty around interest rate trajectories and global supply chains — factors that also weigh on speculative assets like Bitcoin.
At the same time, some crypto proponents argue that inflationary environments could ultimately favour Bitcoin’s long-term thesis as a hedge against fiat currency devaluation. However, this narrative often competes with short-term realities of liquidity tightening and flight to safety.
Volatility set to remain high
The crypto market has already experienced choppy trading throughout the summer, driven by shifting expectations around US monetary policy and mixed signals from regulatory authorities. The added layer of trade tension could fuel further volatility, especially if it spills over into geopolitical spheres or prompts retaliatory measures from the European Union.
Ethereum also edged lower, down 1.5%, while other altcoins such as Solana and Avalanche showed steeper declines, reflecting their higher sensitivity to shifts in investor risk tolerance.
A politically driven market
Bitcoin’s performance over the coming weeks is likely to reflect a complex interplay of macroeconomic uncertainty, political headlines and shifting capital flows. While tariffs are not directly linked to blockchain markets, the broader effects on global growth expectations and investment sentiment remain crucial.
For now, Bitcoin appears to be consolidating, but political disruption may continue to shape its near-term path — especially as traditional markets absorb the implications of a more aggressive US trade stance.
REFH – Newshub, 14 July 2025
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