U.S. President Donald Trump confirmed a 25% tariff on imports from Japan and South Korea, prompting negative market reactions in cryptocurrencies.
Tariff Announcement
President Trump confirmed the imposition of 25% tariffs on imports from Japan and South Korea, effective August 1. This measure aims to revise trade dynamics and does not imply an extension of the negotiation deadline.
Market Reaction
The tariff announcement immediately affected Bitcoin, which experienced a drop of approximately $860, equating to a 0.79% decline. Ethereum fell over 2%, with Solana and XRP each dropping 1.5-2% amid tariff fears.
Historical Impact
Financial markets faced increased volatility as investors re-evaluated their risk exposures. Historical patterns show that cryptocurrencies like Bitcoin and Ethereum act as 'risk assets' during trade disputes, despite their inherent volatility.
Trump's tariff announcement significantly impacts the cryptocurrency market, leading to price drops and increased volatility. Investors remain vigilant as they anticipate potential changes in financial policy.
