Bitcoin prices edged lower on Thursday following comments from U.S. President Donald Trump about ongoing trade negotiations with China and the prospect of new tariffs targeting other major economies.
Traders also continued to digest softer-than-expected U.S. inflation data released a day earlier, weighing its implications for tariff-driven price pressures and the Federal Reserve’s interest rate outlook.
As of 2:10 ET (06:10 GMT), Bitcoin had declined 1.7% to $107,782.20.
Tariff Anxiety Weighs on Crypto Markets
Speaking in London on Wednesday, Trump announced that a trade framework with China was “done,” pending final approval from both himself and Chinese President Xi Jinping, following two days of talks.
Under the provisional agreement, China would immediately resume export licenses for rare earth minerals and magnets. In return, the U.S. would maintain a 55% tariff on Chinese goods, while China would keep its 10% duty on U.S. imports. The deal also includes continued access for Chinese students to U.S. educational institutions.
However, Trump added that he plans to issue formal tariff offers to other key economies in the coming weeks, with a “take it or leave it” approach ahead of a July 9 deadline. While he indicated the deadline could be extended, he expressed confidence that it wouldn’t be necessary.
Despite initial enthusiasm, markets viewed the London framework more as a temporary pause than a comprehensive resolution to broader trade tensions. This cautious sentiment contributed to a decline in crypto prices.
Investors are now turning their attention to next week’s Federal Reserve meeting, where the central bank is expected to hold interest rates steady. Nonetheless, weaker CPI data has strengthened market expectations for a rate cut later this year.
Altcoins Follow Bitcoin Lower; Cardano Drops 5%
The broader cryptocurrency market also came under pressure amid the risk-off sentiment.
- Ethereum (ETH) fell 1% to $2,760.11
- XRP declined 1.9% to $2.2507
- Solana (SOL) lost 4%
- Cardano (ADA) dropped 5%
- Polygon (MATIC) slipped 1.7%
Among meme-based tokens, Dogecoin (DOGE) fell 4%, while $TRUMP dropped 4.2%.
