This week, Bitcoin's bullish momentum sharply declined as President Donald Trump sparked fears of a global trade war, negatively impacting financial markets.
Market Reaction to Risk Sentiment
At the beginning of the week, Bitcoin fell below $108,000 following Trump's threats to impose new tariffs on key US trading partners. The overall market response was swift: the S&P 500 experienced a sharp decline of nearly 1%, accompanied by a 4.1% drop in shares of Japanese automakers Toyota and Honda.
Delay Confirmation of Tariffs to August 1
Originally, the White House had set July 9 as the critical date for new tariffs; however, Press Secretary Karoline Leavitt confirmed that the deadline would be pushed to August 1. "President Trump is determined to bring reciprocal balance to trade," Leavitt noted, emphasizing that the new timeline allows partners the chance to reach fair agreements.
Bitcoin Futures and Support Levels
While spot prices slipped, Bitcoin futures showed cautious optimism with a 7% increase in open interest over the past month. Analysts note that if Bitcoin breaks below the $107,000 level, it could trigger a cascade of stop losses, further dragging down the price.
With Trump's next move anticipated, crypto traders and investors are focusing on the approaching August 1 deadline. The future of Bitcoin will depend on the unfolding trade situation and market reaction.
