The cryptocurrency market experienced significant downward pressure following President Donald Trump’s announcement of new tariffs on imports from Iraq and Libya. Bitcoin and Ethereum prices declined over 2% immediately after the news broke, challenging conventional views of Bitcoin as a safe haven asset.
The bearish sentiment extended beyond cryptocurrencies, with the S&P 500 also registering declines. Market participants expressed concerns about potential sustained economic disruptions ahead of the August 1 tariff implementation deadline.
Bitcoin’s sharp retreat amid increased geopolitical risks raises questions about its reputation as a digital safe haven during periods of uncertainty. Similarly, Ethereum’s price decline appears to reflect a broader risk-off movement across financial markets.
Analysts and traders are closely monitoring developments preceding the August 1 tariff deadline, anticipating possible additional market volatility as tensions escalate.