On July 7, 2025, Bitcoin (BTC) fell below $108,000, dropping 0.74% to $107,936, following President Donald Trump’s announcement of sweeping tariffs ranging from 25% to 40% on imports from Japan, South Korea, Malaysia, Laos, Myanmar, South Africa, and Kazakhstan, effective August 1, 2025, unless “fairer deals” are negotiated, per Cryptos Newss. The S&P 500 saw its sharpest single-day drop in three weeks (nearly 1%), with Japanese auto giants Toyota and Honda losing 4.1% and 3.8%, respectively. As investors turned to safe-haven assets, the value of the U.S. dollar increased relative to the yen. Bitcoin’s slide, mirroring equities, underscores its behavior as a risk asset during macro turbulence, despite earlier highs near $111,800. X posts from @TedPillows (July 7, 2025) note BTC’s resilience, predicting a rebound to $120,000 if markets stabilize post-delay.
Initially set for July 9, the tariff deadline was extended to August 1, as confirmed by Press Secretary Karoline Leavitt, who stated, “President Trump is determined to bring reciprocal balance to trade,” per Cryptos Newss. Treasury Secretary Scott Bessent emphasized deal quality over quantity but offered no updates on negotiations. Trump’s warning of an additional 10% tariff on BRICS-aligned nations (Brazil, Russia, India, China) heightened uncertainty, with China already facing a 30% tariff (10% baseline + 20% fentanyl, post-Geneva talks). This follows earlier volatility, with Bitcoin dropping to $74,500 in April after a 145% tariff peak, rebounding to $81,000 after a 90-day pause (April 9, 2025). @Reuters on X reported Trump’s tariff strategy as a “game” to pressure trade deals, per Baird’s Ross Mayfield.
Bitcoin futures show cautious optimism, with a 7% rise in open interest over the past month, despite a 12% BTC drop from May to June, per Cryptos Newss. A double top at $109,500 signals bull hesitance, with $107,300 as a key support zone. A break below $107,000 could trigger stop losses, pushing BTC to a $106,300-$107,000 fair value gap or even $105,000. A strong bounce above $109,500 could target $112,000 resistance. @X_Four_iv (April 11, 2025) noted BTC’s need to reclaim $93,000 for a bullish surge, warning of a deeper correction to $65,000-$71,000 if support fails. The Crypto Fear & Greed Index at 23 (April 7, 2025) reflects extreme fear, amplifying volatility risks.
The August 1 deadline intensifies scrutiny, with Trump’s tariff moves potentially sparking a trade war or proving a strategic bluff. Bitcoin’s correlation with risk assets suggests further volatility, with $2.33 billion in derivatives liquidations (including $400 million in BTC) during prior tariff shocks, per CoinGlass. Experts like BitMEX’s Arthur Hayes see potential for a BTC rally if tariffs drive inflation, positioning crypto as a hedge, while Bitwise’s Jeff Park links Trump’s low-rate push to real estate interests, potentially boosting risk assets. Investors should monitor trade talks, Federal Reserve rate decisions, and BTC’s $107,000 support, with updates via @bl_ockchain or @Reuters on X. A tariff cooldown or Fed easing could drive BTC to $120,000, but escalation risks a deeper crash.
