Trump will impose tariffs on 7 countries on August 1. Will the Crypto Assets market crash?

U.S. President Trump's trade policy has once again sparked tension in global markets. In a post on Tuesday evening (July 8), he indicated that he is prepared to announce new trade tariffs targeting at least seven countries, with plans to impose new tariffs on more countries thereafter. These new tariff rates will range from 25% to 40% and will take effect on August 1, 2025. This move will undoubtedly trigger sudden fluctuations in global stock markets and the Crypto Assets market. Against this backdrop, a key question arises: Will the Crypto Assets market collapse again?

New Tariffs Coming Soon: Global Markets Face Fluctuation

Trump had earlier warned that if 14 countries could not reach a trade agreement before the beginning of next month, tariffs would rise back to the high levels seen in April. Recently, he imposed tariffs of 25% to 40% on the 14 countries, which quickly affected the cryptocurrency market. Within 24 hours, the entire market dropped by 4.5%, with all major crypto assets experiencing losses. Bitcoin fell by 1.56%, to just below $108,000, while Ethereum dropped by 1.89%, to $2,535. Dogecoin saw the largest decline, falling by 4.78%.

Stocks such as MicroStrategy and Robinhood also closed lower, with Bitcoin mining stocks experiencing even larger declines. The overall market was also affected. The Dow Jones Industrial Average, S&P 500, and Nasdaq indices all fell. This is similar to the situation in April, when the U.S.-China trade tensions caused Bitcoin to drop below $80,000, triggering a massive sell-off.

Trump also announced an additional 10% tariff on countries that support BRICS. With more tariffs set to take effect on August 1, the Crypto Assets market may continue to be under pressure and could further decline. Critics warn that Trump's aggressive tariff plan could harm the global economy and even lead the U.S. economy into recession. However, he stands by his position and states that this is necessary.

Tariffs and Inflation: Trump's Argument and the Federal Reserve's Challenge

The United States added more than $350 billion in debt in a single day, setting a historical record and marking the largest increase since 2024. Analysts claim that this is good news for Bitcoin and Crypto Assets, as concerns over the stability of fiat currency continue to escalate.

Expectations for interest rate cuts in July have dropped from 90% to just 61%. Rising tariffs and inflation concerns may hinder the Federal Reserve's ability to loosen monetary policy, thereby limiting the upward potential of crypto assets. However, Trump claims that according to a new study by the U.S. Bureau of Economic Analysis (CEA), the impact of tariffs on inflation is "zero." He is now calling for Federal Reserve Chairman Powell to cut interest rates immediately.

The Resilience and Bullish Momentum of Bitcoin?

Despite the global market reacting to Trump's tariffs, Bitcoin is currently stable around $108,700, demonstrating resilience. Bitcoin has essentially remained calm, showing that investor confidence is steadily increasing. The demand from institutional investors also remains strong, with ETF funds continuing to flow in steadily.

Bitcoin's breakthrough momentum is strong, and the market remains robust. Some analysts believe that the worst-case scenario, including potential wars, has been priced in by the market. With the increase in the money supply, both the Crypto Assets and stock markets could experience several bullish months, with BTC's target price reaching between 120,000 and 130,000 USD.

To maintain a bullish momentum, Bitcoin needs to stay above $99,000. After dropping to $107,400 to fill the CME gap, BTC is expected to break through the $110,000 to $114,000 range in the coming days.

Trump's upcoming tariff policy will undoubtedly bring new uncertainties to the global economy and the Crypto Assets market. Although Bitcoin has shown a certain degree of resilience, with analysts predicting it will continue to rise, historical experience suggests that trade wars may trigger significant market Fluctuation. Investors should closely monitor the actual impact of the tariff policy, as well as the Federal Reserve's monetary policy direction, and carefully assess the risks.