Bitcoin fell below $65,000 after the Trump administration announced 10% to 12.5% tariffs on imports from 60 trading partners covering more than 99% of US trade.
summary
- Bitcoin fell below $65,000 after Trump announced new tariffs covering 60 major trading partners.
- Strong US unemployment claims data and rising Treasury yields added pressure on risk assets.
- Cryptocurrency liquidations reached around $162 million, with leveraged traders absorbing most of the losses.
CNBC reported that the tariffs will go into effect at 12:01 a.m. ET on Friday, replacing a temporary 10% global tariff set to expire the same day. The Office of the US Trade Representative linked these measures to what it described as inadequate enforcement against goods made with forced labor.
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 approximately 1.5% over 24 hours, with the market capitalization standing near $1.3 trillion.
Selling resumed after details of the tariff plan emerged, leaving the rally above $65,000 short-lived. Short-term charts showed successive bearish candles during the decline, while CoinGlass recorded increasing liquidations of leveraged long positions as traders faced another risk-off development.
The tariff announcement came during a difficult session for risk assets. The Nasdaq Composite Index fell about 2.2% to its lowest level in four weeks, while the Standard & Poor’s 500 Index lost 1.2% and the Dow Jones Industrial Average fell about 507 points.
Rising tensions between the United States and Iran put pressure on Bitcoin earlier today. Al Jazeera reported that President Donald Trump He threatened An unprecedented “massive attack” on Iran as military exchanges continue across the region.
Strong labor data has added pressure to Bitcoin
New US employment data gave traders another reason to reevaluate interest rate expectations. The Labor Department reported that initial unemployment claims fell by 22,000 to 187,000 in the week ending July 18, the lowest total since September 1969.
Economists polled by Reuters had expected claims to rise to 212,000. Continuing claims also fell by 2,000 to 1.796 million, according to the department, showing that layoffs remained limited despite a hiring slowdown and uncertainty surrounding trade policy.
Stronger employment numbers could reduce the urgency for the Fed to ease monetary policy because they indicate that the economy can withstand constrained borrowing costs. Interest rate futures indicated that traders are weighing the possibility of a Federal Reserve rate hike by September, Reuters reported, as rising oil prices heightened inflation concerns.
Treasury yields rose alongside those expectations, with the 10-year bond yield at around 4.70%, according to Investors Business Daily. Higher bond yields can impact cryptocurrencies because they increase the return available from traditional assets that carry less risk than Bitcoin.
Leveraged traders bore most of the direct damage from the decline. CoinGlass data showed that 62,869 cryptocurrency traders were liquidated over a 24-hour period, with the total liquidation amounting to approximately $162 million. Separate Coinalyze figures put Bitcoin liquidations near $28.7 million, including nearly $26.2 million in long positions.
Bitcoin’s decline came after a brief advance toward $67,000 earlier in the week. Bitcoin was approaching a seven-week high on July 21 despite the conflict with Iran and an expected tariff decision, but buyers failed to sustain the move as macroeconomic pressures intensified.
New tariffs rebuilt Trump’s trade barrier
The administration imposed the tariffs under Section 301 of the Trade Act of 1974, which allows Washington to retaliate against trade practices it deems unfair. The legal path differs from the emergency powers used for a previous set of definitions that the Supreme Court struck down in February.
A senior administration official described the measures as the most comprehensive international trade action on labor rights ever taken by any country. According to the administration, the rates depend on the progress each trading partner has made in restricting imports produced with forced labor.
Countries and territories that have imposed partial restrictions or made related commitments will face a 10% rate. US Trade Representative documents show that the group includes Canada, Mexico, the European Union, the United Kingdom, Taiwan, Argentina and several Southeast Asian and Latin American economies.
A 12.5% tariff will apply to partners that the US Trade Representative has determined have made less progress, including China, India, Japan, South Korea, Vietnam, Australia and New Zealand. US Trade Representative Jamison Greer said weak enforcement abroad forces US workers to compete against goods linked to abusive labor practices.
Several key product groups will remain outside the scope of the new duties. The exemptions include crude oil, petroleum products, pharmaceuticals, rare earth materials, aircraft parts and some foods, while goods already covered by Section 232 tariffs will not face additional duties, Reuters reported.
Canadian and Mexican products that comply with the US-Mexico-Canada Agreement will also be exempt. Administration officials said the new tariffs on steel and aluminum would not be in addition to existing tariffs related to national security.
The US Trade Representative’s office has not published an estimate of how much revenue the tariff package will generate, according to CNBC. Trading partners could secure lower rates by strengthening forced labor import rules, although officials said no country currently imposed a complete ban.
For Bitcoin, the announcement added trade uncertainty to a session already shaped by geopolitical tensions, higher oil prices, stronger labor data, and rising Treasury yields. CoinGecko data put Bitcoin near $65,000 at the time of reporting, leaving this level as an immediate test for buyers after the recent decline.
