Bitcoin fell below $65,000 after the Trump administration announced tariffs of 10% to 12.5% on imports from 60 trading partners that account for more than 99% of US trade.
Summary
- Bitcoin fell below $65,000 after Trump announced new tariffs that include 60 major trading partners.
- Strong US jobless claims data and rising Treasury yields are putting more pressure on risk assets.
- Crypto closed at around $162 million as long traders who gained momentum took a lot of losses.
CNBC reported that the duties will begin at 12:01 a.m. ET on Friday, replacing a 10% global tax that is scheduled to expire the same day. The US Trade Representative’s Office linked the measures to what it described as insufficient enforcement of the law on imported goods.
Bitcoin traded as low as $64,985 on Thursday, July 23, before briefly recovering above $65,000. crypto.news data showed the asset fell by about 1.5% in 24 hours, its market capitalization is close to $1.3 trillion.
The sale resumed after the details of the tax plan emerged, leaving the increase above $65,000 temporary. The short-term charts showed consecutive bearish candles during the downtrend, while CoinGlass recorded the increasing exit of long leveraged positions as traders faced further risk reduction developments.
The tax announcement comes at a difficult time for dangerous goods. The Nasdaq Composite fell nearly 2.2% to a four-week low, while the S&P 500 lost 1.2% and the Dow Jones Industrial Average fell nearly 507 points.
Escalating tensions between the United States and Iran had weighed on Bitcoin earlier in the day. Al Jazeera reported that President Donald Trump has threatened an unprecedented “major attack” on Iran as military exchanges continue across the region.
Strong labor data added pressure on Bitcoin
New US employment data gave traders another reason to reassess interest rate expectations. The Labor Department reported that initial jobless claims fell by 22,000 to 187,000 in the week ended July 18, the lowest number since September 1969.
Economists polled by Reuters had expected claims to rise to 212,000. Continuing claims also fell by 2,000 million to 1.796, according to the department, indicating that layoffs remain limited despite low employment and uncertainty surrounding trade policy.
The strong labor figures could reduce the Federal Reserve’s urgency to ease monetary policy because they suggest the economy can withstand more limited borrowing costs. Interest rate futures showed traders were considering a possible Fed rate hike in September, Reuters reported, as higher oil prices added to inflationary pressures.
Treasury yields rose in line with expectations, with the 10-year yield reaching around 4.70%, according to Investors Business Daily. Higher bond yields can weigh on cryptocurrencies because they increase the returns available from traditional assets that carry less risk than Bitcoin.
Strong traders took most of the immediate damage from the decline. CoinGlass data showed that 62,869 crypto traders were liquidated in 24 hours, and the total liquidation reached $162 million. Separate calculations by Coinalyze put Bitcoin issuance near $28.7 million, including about $26.2 million in long positions.
Bitcoin’s fall followed a brief run towards $67,000 earlier in the week. BTC was nearing a seven-week high on July 21 despite the conflict with Iran and the pending tax decision, but buyers failed to maintain that momentum as economic pressures mounted.
The new tariffs are a rebuilding of Trump’s trade barrier
The administration imposed the tariffs under Section 301 of the Trade Act of 1974, which allows Washington to respond to trade practices it deems unfair. The legal route is different from the emergency powers used for an earlier set of tariffs that the Supreme Court overturned in February.
A senior administration official described the measures as the most international trade action on labor rights ever taken by any country. According to the administration, the rates depend on how much progress each trading partner has made in limiting imports of forced labor.
Countries and territories that have introduced incomplete restrictions or made related commitments will face a 10% rate. USTR documents show that this group includes Canada, Mexico, the European Union, the United Kingdom, Taiwan, Argentina and many Southeast Asian and Latin American economies.
A 12.5% tariff will apply to partners USTR has determined have made the least progress, including China, India, Japan, South Korea, Vietnam, Australia and New Zealand. US Trade Representative Jamieson Greer has argued that weak enforcement forces American workers to compete with goods linked to abusive labor practices.
Several major product groups will remain without new jobs. Reuters reported that the exemptions include crude oil, petroleum products, medicines, rare earth items, aircraft parts and other food, while goods already included in the Section 232 tariffs will not face additional charges.
Canadian and Mexican products that comply with the US-Mexico-Canada Agreement will also be exempted. Administration officials said the new steel and aluminum duties would not exceed existing national security costs.
USTR has not released an estimate of how much revenue the tax package will generate, according to CNBC. Trading partners could protect lower prices by tightening their own laws on forced labor, although officials said no country currently enforces a total ban.
For Bitcoin, the announcement added trading uncertainty to a session already shaped by geopolitical tensions, rising oil prices, strong labor data and higher Treasury yields. CoinGecko data placed BTC near $65,000 at the time of reporting, leaving the level as a quick check for buyers after the recent decline.
