Bitcoin crash narrative returns as geopolitical tensions mount

• Bitcoin fell under $108K as Trump’s shock tariff threats sparked world risk-off sentiment
• A delayed tariff deadline and recent BRICS warnings added extra confusion to an already nervous market

President Donald Trump’s sudden tariff threats have shaken extra than simply diplomatic ties; they’ve rocked world markets, too.

And because the stress trickles down, Bitcoin [BTC] isn’t wanting just like the digital gold it’s usually claimed to be.

As a substitute, it’s flinching like some other threat asset.

Bitcoin blinks first as tariff talks spoof buyers

Bitcoin’s latest rally got here to a sudden halt on the seventh of July, dropping under $108,000 as world markets reacted to renewed commerce tensions.

The set off? President Donald Trump reignited fears of a world commerce warfare by asserting steep new tariffs. He imposed 25% duties on imports from Japan and South Korea, two of America’s allies.

Supply: X

Later, Trump expanded the checklist to incorporate Malaysia, Kazakhstan, and South Africa, with tariffs starting from 25% to 40%. These strikes rattled investor confidence and sparked a wave of risk-off sentiment throughout world markets.

In response, Bitcoin, usually seen as a threat asset, fell sharply, behaving extra like a high-beta tech inventory amid the uncertainty. Nevertheless, at press time, BTC regained its stride and was buying and selling at $108,899.

Shares, crypto, and currencies reply

The fallout from the tariffs was swift and wide-reaching.

Supply: TradingView

Bitcoin dropped sharply, mirroring the S&P 500’s steep pink candle that very same day; a uncommon second of synchronized risk-off habits throughout asset courses.

Supply: TradingView

Notably, Japanese automakers had been among the many first and largest casualties, too, with shares of Toyota and Honda tumbling amid fears of retaliatory commerce measures.

In the meantime, the U.S. greenback surged towards each the yen and the gained, as buyers fled to relative security.

Deadline delayed, however doubt deepens

Although the market dip was comparatively delicate, its timing – coinciding with the S&P 500’s droop – has analysts warning that Bitcoin is appearing much less like a hedge and extra like an indicator of world threat.

The White Home’s resolution to push the anticipated tariff deadline to the first of August did little to ease nerves.

As a substitute, the sudden shift, introduced by Press Secretary Karoline Leavitt, brought on extra uncertainty.

Leavitt informed reporters,

“President Trump is decided to convey reciprocal stability to commerce, and the brand new timeline ensures our companions have each alternative to succeed in honest agreements…”

Trump’s unpredictability on commerce, coupled with a recent risk concentrating on BRICS-aligned nations, left buyers scrambling.

Treasury Secretary Scott Bessent tried to calm markets, stating that President Trump is concentrated on “the standard of commerce offers, not the amount.

For now, markets stay caught… ready, watching, and bracing.