Recently, Bitcoin and other cryptocurrencies experienced volatility after President Trump's announcement of new 25% tariffs on imports from certain countries.
Announcement of Tariffs and Its Consequences
President Trump announced new tariffs that could reach 40% on imports from Japan, South Korea, and others starting August 1. His historical approach to trade policy features assertive measures that affect global markets.
Reaction of the Cryptocurrency Market
The cryptocurrency market saw immediate declines: Bitcoin (BTC) fell nearly 0.79%, and Ethereum (ETH) declined over 2%. Investors sought safer assets, which contributed to the rise of the U.S. dollar.
Prospects and Trader Confidence
Despite this, Bitcoin futures showed resilience, with aggregated open interest rising by 7% over the past 30 days, marking the first sustained uptick since May this year. "This uptick reflects growing trader confidence and increased appetite for volume and leverage," noted Edul Patel, co-founder and CEO of Mudrex.
While current tariffs raise concerns, the rise in futures open interest signals potential positive shifts. Historical precedents suggest that short-term market impacts occur, but longer trends may favor crypto stability.
