Simply put
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The altcoin market is struggling as the U.S. President readies to initiate trade concerns, sending tariff letters to trading partners.
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On Friday morning, cryptocurrencies like Dogecoin, XRP, and Solana saw declines.
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Trump indicated to the press that a “10 or 12” letter would be dispatched on Friday.
Following renewed trade tensions caused by U.S. President Donald Trump’s tariff threats, the controversial “big, beautiful bill” passed another critical stage in Congress. This left Tesla CEO Elon Musk feeling let down on Thursday.
XRP fell by 2.8% over the past 24 hours, Solana dropped by 2.6%, and Cardano experienced a 4% decline. Dogecoin also lost 4%, along with a significant 4.7% drop in high liquidity.
“President Donald Trump suggested that a new tariff notice could come on Friday, aimed at boosting leverage before the July 9 trade talks,” noted a shared report. “This suggests potential escalations in the U.S.’s global trading strategies. The market is understandably worried about how this might further strain global trade and economic perspectives.”
Trump mentioned to reporters that “10 or 12” letters, outlining tariffs ranging from 10% to 20% or 60% to 70%, are slated for release on Friday. He added that more letters would follow in the “coming days.”
This movement occurs ahead of the July 9 scheduled customs duty freezing, which had initially been announced back in April. Ethereum dropped by 6.5%, and Dogecoin saw a significant decline of 9.8% the following day.
Since that announcement, tensions surrounding the trade war have decreased thanks to agreements with both China and the UK, which might support market growth.
Yet, uncertainty around tariffs has resurfaced as the 90-day freezing period takes shape. Similarly, altcoins like Jupiter, World Coin, and Algorand dropped by 6.3%, 6.2%, and 5.8%, respectively, while the popular meme coin Pepe saw a 6.3% decline.
Trump’s “Big and Beautiful Bill”
In other news, Trump’s “big and beautiful bill” cleared its final congressional hurdle on Thursday.
The Tesla CEO and other former Trump allies have expressed that the bill is rather unappealing. Back in June, Musk took to social media to voice his disappointment, suggesting that Trump was tied to the controversial convicted offender, Jeffrey Epstein. Trump later remarked that the situation had irked him when he found out about potential cuts within the “big, beautiful bill.”
Arthur Hayes, co-founder of crypto exchange Bitmex, predicted that, due to this bill, Bitcoin could see itself testing the $90,000 benchmark this year, although he previously forecasted that major cryptocurrencies would hit $250,000 this year. He asserted that the Treasury would bolster its general accounts.
However, Bitcoin has been quite stagnant since the bill’s passage, with altcoins facing the brunt of the downturn.
