Market Wrap: Crypto Markets Shrug Off New Trump Tariff Threat as July Deadline Looms
Friday’s crypto market displayed relative calm despite renewed tariff threats. Bitcoin (BTC), according to CoinDesk, fell 0.7% over the past 24 hours, trading at $106,700. This performance mirrored the CoinDesk 20 index (excluding stablecoins, memecoins, and exchange tokens), which also decreased by 0.7%. Sui (SUI) was the index’s most volatile token, showing a modest 3.3% increase.
Crypto stocks, however, experienced more pronounced fluctuations. Coinbase (COIN) and Circle (CRCL) saw significant losses of 6% and 16%, respectively. Circle’s stock is down 40% since its peak near $300 on Monday. The performance of Bitcoin miners was mixed. While Core Scientific (CORZ) saw a substantial 30%+ increase on Thursday following potential acquisition interest from CoreWeave, Hut 8 (HUT) declined by 6.5%.
This subdued market reaction contrasts with the looming threat of escalating tariffs. President Trump announced the termination of trade discussions with Canada due to its planned Digital Services Tax on U.S. tech companies. He indicated that retaliatory tariffs would be announced within seven days. The existing pause on reciprocal tariffs is also set to expire on July 9th.
Despite this, both traditional and cryptocurrency markets remain largely unconcerned, as noted by Coinbase analysts in a recent report. The analysts attribute this complacency to the lack of economic data reflecting the potential risks associated with the tariff situation. They suggest this calm is likely to persist, anticipating that the inflationary impact of the tariffs will be less significant than previously projected. The subdued market response suggests a degree of confidence that the economic consequences of renewed tariff tensions may be less severe than initially feared. The situation warrants continued monitoring, however, given the potential for unforeseen economic ripple effects.
