Cryptocurrencies XRP, SOL, and DOGE experience a downturn, following Trump's renewal of trade tensions and the passing of the 'Big, Beautiful Bill' legislation.
In the world of cryptocurrencies, the past week has been marked by significant volatility, with many altcoins experiencing notable declines amid heightened trade tensions. The catalyst for this market turbulence can be traced back to U.S. President Trump's recent tariff threats against key trading partners.
On July 4, 2025, President Trump announced imminent tariff letters, with potential tariffs ranging from 10% to as high as 70%. These developments have reignited fears of a prolonged trade war and have been a catalyst for increased market volatility, particularly impacting alternative cryptocurrencies.
For instance, within 24 hours of the announcement, XRP dropped 2.8%, Solana fell 2.6%, Cardano declined by 4%, and Dogecoin and Hyperliquid experienced declines of 4% and 4.7% respectively. The looming expiration of the 90-day tariff freeze on July 9 has further intensified market anxiety, leading investors to closely monitor trade developments.
The broader altcoin market also lost value in the days leading up to this announcement, with the total altcoin market cap dropping below $1.30 trillion at the start of July, reflecting a 2.51% decline over a 24-hour period.
Analysts note that such geopolitical and economic uncertainties typically correlate with increased volatility in the crypto market, especially for altcoins. This period has been one of the weakest for altcoins in the past two years, underscoring their sensitivity to macroeconomic and political events, particularly those that threaten to disrupt global trade and economic growth.
In other cryptocurrency news, Arthur Hayes, co-founder of crypto exchange BitMEX, has revised his Bitcoin price prediction for the year. Despite previously predicting $250,000, Hayes now suggests Bitcoin could test $90,000 this year, citing the Treasury's potential liquidity drain from assets like Bitcoin due to the refilling of its General Account.
Meanwhile, in the traditional market, tariff anxiety has reignited as the 90-day freeze approaches. President Donald Trump has signaled that new tariff notices could be issued as early as Friday. Trump's "Big, Beautiful Bill" has passed its final hurdle in Congress, but the bill's potential impact on electric vehicle mandates in Tesla's business has reportedly led to a rift between Trump and Tesla CEO Elon Musk, who called the bill a "disgusting abomination" in June.
In the world of meme coins, Pepe, an edgy meme coin, has sagged by 6.3%. The overall cryptocurrency market continues to navigate through these challenging times, with investors keeping a close eye on both crypto and geopolitical developments.
[1] CoinMarketCap (2025). Crypto Market Cap. Retrieved from https://coinmarketcap.com/ [2] CNBC (2025). Trump announces tariff threats against key trading partners. Retrieved from https://www.cnbc.com/ [3] Bloomberg (2025). Cryptocurrencies Suffer as Trade War Tensions Escalate. Retrieved from https://www.bloomberg.com/ [4] Reuters (2025). Altcoins Underperform Against Bitcoin Amid Trade Tensions. Retrieved from https://www.reuters.com/
- Amid trade tensions and president Trump's tariff threats, various altcoins such as XRP, Solana, Cardano, Dogecoin, Hyperliquid, and others have seen significant declines in value.
- Most altcoins have experienced a 2.51% decline in market cap over the past 24 hours, with the total altcoin market cap dropping below $1.30 trillion amid increased market volatility.
- Analysts suggest that altcoins are particularly sensitive to geopolitical and economic uncertainties, making them more susceptible to market turbulence, such as the ongoing trade war.
- Dapp developers might find it challenging in this period, as altcoins' value fluctuations could potentially impact their project's economics.
- The president's announcement of imminent tariff letters, coupled with the looming expiration of the 90-day tariff freeze, has increased market anxiety, causing a significant drop in the value of stablecoins as well.
- In positive cryptocurrency news, Arthur Hayes, co-founder of crypto exchange BitMEX, has revised his Bitcoin price prediction for the year, suggesting it could test $90,000 due to the Treasury's potential liquidity drain from assets like Bitcoin.
- Political developments, such as the controversy surrounding "The Big, Beautiful Bill" and Elon Musk's public criticism of the bill, could also influence the value of digital assets like Ethereum (ETH) and other Ethereum-based assets, such as altcoins and Dapps. Additionally, they might have an impact on the crypto exchange industry, as potential trade policy changes could influence the overall market sentiment.
