The post Why Crypto Market is Down Today? Trump’s Tariff Shock Sparks 4.5% Crash appeared first on Coinpedia Fintech News After a strong start to the week, market sentiment took a sharp turn as traders adopted a more cautious tone. Early excitement around Pump.fun’s PUMP token cooled quickly after Gate.io mysteriously removed its presale announcement, which had briefly teased a $600 million target for July 12. Meanwhile, Bit Digital made waves by selling all its Bitcoin holdings and shifting its entire treasury to Ethereum, now holding over 100,000 ETH worth $254.8 million, making it one of the largest public ETH holders. But the real shock came, as the crypto market plunged 4.5% following President Trump’s unexpected tariff letters to 14 countries. Bitcoin, Ethereum, and especially Dogecoin tumbled, with the fallout spreading to crypto stocks and broader markets, triggering renewed investor anxiety. BREAKING: President Trump sends out more “tariff letters” with the following tariff rates announced today: 1. Cambodia: 36% 2. Thailand: 36% 3. Bangladesh: 35% 4. Serbia: 35% 5. Indonesia: 32% 6. Bosnia: 30% 7. Tunisia: 25% 8. Japan: 25% 9. South Korea: 25% These tariffs are… — The Kobeissi Letter (@KobeissiLetter) July 7, 2025 Tariffs Target 14 Nations—More to Come The new tariffs, ranging between 25% to 40%, will take effect on August 1, 2025. Countries like South Korea, Japan, Malaysia, and South Africa were among the first to receive the notices. Trump justified the tariffs as a response to persistent trade deficits, warning of further hikes if retaliation follows. However, critics like economist Peter Schiff say these measures miss the mark entirely. According to Schiff, the issue lies more with U.S. competitiveness than unfair foreign practices. Trump's letters to Japan and South Korea demonstrate a complete lack of understanding of trade. Tariffs have nothing to do with America's trade deficits with either nation. Japan's tariffs on U.S. goods average less than 2%, and Korea's average less than 1%. Our trade deficits… — Peter Schiff (@PeterSchiff) July 7, 2025 While many agree with Schiff, other crypto users think that countries like South Africa and Malaysia are being targeted for aligning with BRICS and China, while pressure on Japan and South Korea aims to secure loyalty in key supply chains. Tariff 2.0 war is getting more intense. Rate Cut Hopes Fade as Uncertainty Grows Adding to the chaos, hopes for a Fed rate cut are fading. The CME FedWatch Tool shows chances of a cut by September dropping to 61.9%, down from 90% just weeks ago. Yields are rising regardless of trade war news, signaling that deficit spending is now steering the economy. With tariffs set to begin in August and the crypto market already reacting harshly, traders are bracing for more turbulence ahead. Crypto Implications Tariff deadline uncertainty has shaken investor confidence, weakening overall risk appetite, something crypto markets heavily rely on. As a result, price action remains choppy, with most altcoins already struggling to gain momentum. Bitcoin (BTC) took a dip of 1.56% below the $108K mark. After settling at $107K. Ethereum dipped slightly to $2,554, while XRP and Polygon bucked the trend with modest gains. Meanwhile, Dogecoin and Solana saw deeper losses. Looking ahead, investor focus is shifting to the upcoming “Crypto Week” starting July 14, when key U.S. bills like the CLARITY Act and Anti-CBDC Surveillance State Act could shape the next regulatory chapter for digital assets. Stocks and Miners Join the Slide It wasn’t just crypto that felt the sting; stocks took a tumble, too. Bitcoin miners saw steep declines, and tech-related equities like MicroStrategy and Robinhood fell 2% and 1%, respectively. The Dow Jones dropped by 422 points, while the S&P 500 and NASDAQ also closed significantly lower.
