In Brief
- Altcoin prices have dropped significantly amid escalating U.S. trade tensions, following President Trump’s intention to send tariff notice letters.
- Cryptocurrencies like DOGE, XRP, SOL, ADA, DOGE, and others saw notable losses, with XRP falling 2.8% and Dogecoin down 4%.
- Analysts believe President Trump’s threat signals a new escalation in trade policy, leading markets to worry about potential economic damage.
U.S. President Trump Stirs Global Trade Concerns, Altcoins Suffer
Major altcoins have experienced notable declines amid escalating U.S. trade tensions. President Donald Trump fueled these concerns by threatening new tariffs and preparing to dispatch official tariff notice letters to trading partners.
Analysts warn that this move signals a potential new stage in U.S. global trade policy escalation. “President Donald Trump signaled that new tariff notices could be issued as early as Friday,” an analyst at derivatives exchange Bitunix noted. “This move signals a potential new round of escalation in U.S. global trade policy. Markets are concerned about further deterioration in global trade and its impact on economic outlook.”
According to reports, Trump informed the media that “10 or 12” letters would be sent Friday, detailing tariffs ranging from 10-20% to 60-70%. He indicated additional notifications will follow in the coming days.
These developments come as the 90-day tariff suspension, initially announced in April (which caused Ethereum and Dogecoin to drop 6.5% and 9.8% respectively on the following day), is set to expire on Wednesday, July 9th. Trade war stresses eased previously due to agreements with China and the UK, lifting market sentiment temporarily. However, anxieties have resurfaced as the deadline approaches.
On Friday morning, the following altcoins posted losses: XRP (-2.8%), DOGE (-4%), SOL (-2.6%), ADA (-4%), and hyperliquid (-4.7%). The broader market saw other altcoins like Jupiter (-6.3%), Worldcoin (-6.2%), Algorand (-5.8%), and Pepe (-6.3%) also experiencing significant declines.
Trump’s “Big, Beautiful Bill” Survives Congressional Hurdle
Meanwhile, on Thursday, President Trump’s controversial economic “Big, Beautiful Bill” cleared its final parliamentary obstacles. This piece of legislation, particularly named due to its prominent placement, signifies a significant national policy achievement for Trump’s administration.
The measure, however, sparked an intensely negative response from Tesla CEO Elon Musk, a prominent Trump supporter just months ago. Musk previously referred to the bill internally as a “disgusting abomination” and embarked on a social media campaign against the President, falsely linking the legislation to Trump’s eligibility. He claimed Trump was named in files regarding convicted child sex offender Jeffrey Epstein.
Trump countered that Musk switched sides only after learning the bill would impose controversial electric vehicle mandates – the central focus of Musk’s leadership at Tesla.
Cryptocurrency market reactions appear mixed amidst these policy shifts. While prominent analyst Arthur Hayes has not changed his earlier Bitcoin price target for the year, predicting a potential “empty chair scenario” where gains made by institutions, like the U.S. Treasury’s General Account, could depress Bitcoin prices as they sell their accumulated holdings, the leading coin remains relatively stable since its passage. However, alternates, or “altcoins,” continue to bear the brunt of recent volatility.
