Bitcoin wavers amid Trump's tariff shock, but bulls eye long-term breakout
The world's most valuable cryptocurrency, which briefly touched $110,000 last week on upbeat US jobs data, pulled back to hover around $108,000 amid geopolitical and policy uncertainty. Market participants expect choppy trading in the short term, but analysts remain largely optimistic about Bitcoin's long-term trajectory.
The tariff decision, which imposes duties of up to 40 per cent on imports from countries including Japan, South Korea, Malaysia, and Kazakhstan, will take effect from August 1. Trump also left the door open for revisions, stating the deadline was 'not 100 per cent firm.' The sudden move added a fresh layer of uncertainty to global financial markets, impacting sentiment across both equities and digital assets.
'Cryptocurrencies thrive on clarity and risk appetite,' said Vikram Subburaj, CEO of Giottus. 'With global trade tensions resurfacing, investors are adopting a wait-and-see approach.' He expects Bitcoin to test lower levels around $104,000 in the near term before staging a potential rebound. 'A retracement may flush out bearish sentiment and create conditions for a sharp rally by late July,' Subburaj noted.
As of the latest data from CoinMarketCap, Bitcoin was trading at $108,016, down 1.04 per cent over the past 24 hours, with a trading volume of $46.36 billion. Its market capitalisation stood at $2.14 trillion, having moved in a narrow range between $107,500 and $109,200.
Edul Patel, co-founder and CEO of crypto investment platform Mudrex, remains bullish on the medium-term outlook. 'The aggregated open interest in Bitcoin futures has climbed by 7 per cent over the past 30 days, marking the first sustained uptick since May. If Bitcoin can close above $110,500, we could see a breakout toward $120,000,' Patel said. He identified $107,100 as the new support level.
Crypto markets were generally muted on Tuesday, with major altcoins showing marginal losses. Ethereum (ETH) declined 1.2 per cent to $2,544, while Solana (SOL) slipped 2.05 per cent. Cardano (ADA) and Hyperliquid (HYPE) were down 1.66 per cent and 6.28 per cent respectively. Binance Coin (BNB) dipped 0.29 per cent, and Ripple (XRP) was largely flat. Stablecoin Tether (USDT) held steady at $0.99, indicating a lack of immediate panic selling.
Analysts also point to macroeconomic developments as a factor underpinning demand for Bitcoin. Simon Peters, a crypto analyst at eToro, said, 'The passing of Trump's 'One Big Beautiful Bill'— expected to add $3.4 trillion to US federal deficits — could reinforce Bitcoin's appeal as a hedge against currency debasement. Investors are watching for fiscal overspending risks, which tend to strengthen the case for deflationary assets.'
Peters added that the expiration of a 90-day tariff pause on July 9 may trigger further market movement depending on the outcome of ongoing trade negotiations.
Looking further ahead, global investment bank Standard Chartered has released a bullish price forecast, projecting Bitcoin could reach $135,000 by the end of the third quarter—up 25 per cent from current levels. Geoff Kendrick, head of Digital Asset Research at the bank, said in a recent note, 'Institutional demand via ETFs and corporate treasury allocations has disrupted historical halving-related price patterns. Bitcoin is demonstrating resilience beyond previous market cycles.'
Traditionally, Bitcoin's price has experienced post-halving downturns around 18 months after the event. However, Kendrick argues that fresh capital inflows from institutional investors have rewritten the narrative, making a new all-time high more likely in 2025.
Investors are also eyeing a crucial legislative week beginning July 14, dubbed 'Crypto Week' on Capitol Hill. US lawmakers are expected to debate at least three major digital asset bills— the Clarity Act, the Anti-CBDC Surveillance State Act, and the Genius Act. The proposed laws could significantly shape the future of the crypto regulatory landscape in the US and influence global sentiment.
Analysts said the broader crypto market has entered a phase of guarded optimism, shaped by evolving geopolitics, regulatory developments, and institutional participation. While short-term volatility remains a concern, the combination of macroeconomic shifts and legislative clarity may pave the way for a more robust and sustained crypto rally in the months ahead, they predicted.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Crypto Insight
an hour ago
- Crypto Insight
Spot Ether ETFs clock $5.4B monthly inflow record amid 20-day streak
United States Spot Ether exchange-traded funds (ETFs) hit a new milestone in July, recording $5.43 billion in net inflows, their highest monthly total since launch, according to ETF tracker SoSoValue. July's performance represented a 369% increase over June's total net inflow of $1.16 billion, showing a significant surge in investor interest. It also eclipsed previous months like May's $564 million, April's $66.25 million and overturned March's outflow record of $403 million. The latest figures brought total cumulative net inflows for Ether ETFs to $9.64 billion, a 129% increase over June's total. Total net assets across all spot Ether ETFs rose to $21.52 billion, up 108% from $10.32 billion a month earlier. The new record placed spot ETH ETF performances near their Bitcoin counterparts, which recorded a monthly net inflow of $6.02 billion, a 30% increase compared to spot Bitcoin ETFs' record of $4.6 billion in June. Spot Ether ETFs extend inflow streak to 20 days Trading activity also intensified in July along with the surge in inflows. SoSoValue data showed that monthly trading volumes in July soared to $33.87 billion, up 236% from June's $10.08 billion, indicating heightened market participation and liquidity. Spot Ether ETFs also recorded 20 consecutive days of net inflows through the end of the month, with the last outflow occurring on July 2. BlackRock's iShares Ethereum Trust (ETHA) still dominated the charts with a total of $9.74 billion in cumulative net inflows. The fund now has net assets of $11.37 billion. The surge in spot ETF inflows coincided with the recent ETH July rally. During the month, the crypto asset rallied to a high of $3,933, according to CoinGecko. This marked a nearly 60% increase over its June 30 price of $2,469. Ethereum surge causes NFT revival Apart from ETFs, the Ether surge also influenced the non-fungible token sector. In July, NFTs recorded a monthly sales volume of $574 million, the sector's second-highest month in 2025. CryptoSlam data showed that the record marked a 47.6% increase over June's $388 million but still trailed January's sales record of $678 million. In addition, the ETH surge also increased the value of NFT collections on Ethereum. In July, the top 10 digital collectibles by market capitalization were Ethereum-based collections. Source:
The National
2 hours ago
- The National
Tesla ordered to pay $243 million in lawsuit over 2019 Autopilot crash
Tesla was ordered to pay $243 million in a lawsuit over the fatal 2019 Autopilot-equipped Model S crash, marking the first major court loss for Elon Musk's electric vehicle company concerning its driver-assistance technology. A jury in Miami federal court in Florida on Friday found that Tesla was responsible for about a third of the accident in the state that killed one pedestrian and seriously injured another when the Tesla Model S drove through a T-intersection and hit a parked car at 80.5kph. The jury assigned the remaining two-thirds to the driver, who was reaching for his mobile phone at the time of the crash. 'Today's verdict is wrong and only works to set back automotive safety and jeopardise Tesla's and the entire industry's efforts to develop and implement life-saving technology. We plan to appeal given the substantial errors of law and irregularities at trial,' Tesla said in a statement. Brett Schreiber, a lawyer for the plaintiffs, said after the verdict: 'Tesla designed Autopilot only for controlled-access highways yet deliberately chose not to restrict drivers from using it elsewhere, alongside Elon Musk telling the world Autopilot drove better than humans.' Mr Musk, the world's richest person, is Tesla's chief executive and majority Tesla shares fell 1.8 per cent at the market close on Friday, and are down 25 per cent this year. In the second quarter of 2025, Tesla said in its safety report that it recorded one crash for every 6.69 million miles driven in which drivers were using its Autopilot technology. For drivers who were not using Autopilot, it recorded one crash for every 963,000 miles driven. By comparison, the most recent data available from National Highway Traffic Safety Administration and Federal Highway Administration (from 2023) shows that in the US there was an car crash approximately every 702,000 miles. Tesla markets its automated driving systems under two brand names – Autopilot and Full Self-Driving. All new Tesla cars come with the Autopilot driver-assist feature as a standard option and the company sells the more advanced Full Self-Driving at a premium for an additional $10,000. Autopilot allows the car to steer, accelerate and brake automatically for other vehicles and pedestrians. Full Self-Driving offers more enhanced features such as auto-parking and automatic lane changes while driving on the motorway.
Dubai Eye
2 hours ago
- Dubai Eye
Trump fires lead official on economic data
President Donald Trump on Friday fired a top Labor Department official on the heels of a market-shocking weak scorecard of the US job market, accusing her of manipulating the figures and adding to already growing concerns about the quality of economic data published by the federal government. In a second surprise economic policy development, the door for Trump to make an imprint on a Federal Reserve with which he clashes almost daily for not lowering interest rates opened much earlier than anticipated when Fed Governor Adriana Kugler unexpectedly announced her resignation on Friday afternoon. The two developments further rattled a stock market already reeling from his latest barrage of tariff announcements and the weak jobs data. The benchmark S&P 500 Index .SPX sank 1.6 per cent in its largest daily drop in more than two months. Trump accused Erika McEntarfer, appointed by former President Joe Biden, of faking the jobs numbers. There is no evidence to back Trump's claims of data manipulation by the Bureau of Labor Statistics, the statistical agency that compiles the closely watched employment report as well as consumer and producer price data. A representative for the BLS did not respond to a request for comment. Friday began with BLS reporting the US economy created only 73,000 jobs in July, but more stunning were net downward revisions showing 258,000 fewer jobs had been created in May and June than previously reported. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified," Trump said in a post on Truth Social. DATA CONCERNS A Trump administration official who requested anonymity said that while all economic data is noisy, the White House has been dissatisfied with how large the revisions have been in the recent data and issues with lower survey responses. The problem started during COVID and has not been addressed in the years since. "There are these underlying problems that have been festering here for years now that have not been rectified," the person said. "The markets and companies and the government need accurate data, and like, we just weren't getting that," the official said. The BLS has already reduced the sample collection for consumer price data as well as the producer price report, citing resource constraints. The government surveys about 121,000 businesses and government agencies, representing approximately 631,000 individual worksites for the employment report. The response rate has declined from 80.3 per cent in October 2020 to about 67.1 per cent in July, BLS data shows. A Reuters poll last month found 89 of 100 top policy experts had at least some worries about the quality of US economic data, with most also concerned that authorities are not addressing the issue urgently enough. In addition to the concerns over job market data, headcount reductions at BLS have resulted in it scaling back the scope of data collection for the Consumer Price Index, one of the most important gauges of US inflation, watched by investors and policymakers worldwide. Trump's move fed into concerns that politics may influence data collection and publication. "Politicizing economic statistics is a self-defeating act," said Michael Madowitz, principal economist at the Roosevelt Institute's Roosevelt Forward. "Credibility is far easier to lose than rebuild, and the credibility of America's economic data is the foundation on which we've built the strongest economy in the world. Blinding the public about the state of the economy has a long track record, and it never ends well." FED CHANGE SOONER THAN EXPECTED Meanwhile, Kugler's surprise decision to leave the Fed at the end of next week presents Trump an earlier-than-expected opportunity to install a potential successor to Fed Chair Jerome Powell on the central bank's Board of Governors. Trump has threatened to fire Powell repeatedly because the Fed chief has overseen a policymaking body that has not cut interest rates as Trump has demanded. Powell's term expires next May, although he could remain on the Fed board until January 31, 2028, if he chooses. Trump will now get to select a Fed governor to replace Kugler and finish out her term, which expires on January 31, 2026. A governor filling an unexpired term may then be reappointed to a full 14-year term. Some speculation has centered on the idea Trump might pick a potential future chair to fill that slot as a holding place. Leading candidates for the next Fed chair include Trump economic adviser Kevin Hassett, Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh and Fed Governor Chris Waller, a Trump appointee who this week dissented with the central bank's decision to keep rates on hold, saying he preferred to start lowering them now. Trump, as he was leaving the White House to spend the weekend at his Bedminster, New Jersey, estate, said he was happy to have the open slot to fill. "I would not read any political motivation into what [Kugler is] doing, although the consequence of what she's doing is she's calling Trump's bluff," said Derek Tang, an analyst at LH Meyer, a research firm. "She's putting the ball in his court and saying, look, you're putting so much pressure on the Fed, and you want some control over nominees, well, here's a slot."
