Customs Disruption in Trump's Administrations Fuels Crypto Market Recovery
U.S.-EU Trade Tariff Postponement Bolsters Crypto Markets
The temporary deferral of trade tariffs between the United States and the European Union has offered a respite to the crypto markets. In the past twelve hours, the total market value has soared by roughly $100 billion.
In a late-night tweet on Truth Social (May 25), U.S. President Donald Trump announced the delay of a 50% tariff on EU goods until July 9, initially planned to commence on June 1. Trump revealed that European Commission President Ursula von der Leyen had requested an extension, to which he agreed.
Von der Leyen responded the next day (May 26), expressing readiness to proceed with discussions while seeking more time until July 9.
Trump's volatile trade decisions have been a source of market instability. The recurrent changes in dates and statements have left investors and nations second-guessing. To date, the U.S. has only finalized a trade agreement with the United Kingdom.
In a May 23 statement, Trump maintained his view of the EU as a trading partner taking advantage of the U.S. Trade negotiations, he suggested a 50% tariff. Data indicates that the EU accounts for 21% of U.S. exports. Notably, key items exported include pharmaceuticals, vehicles, aircraft and engine parts, machinery equipment, petroleum products, and alcoholic beverages.
Cryptocurrency Markets on the Recovery Path
Last week, the crypto market experienced a 4% dip due to escalating trade tensions. However, Trump's latest pronouncements have restored investor confidence, resulting in a sharp increase in Bitcoin prices, reclaiming the $109,000 mark.
Moving forward, U.S. inflation and GDP data could lead to new market volatility this week.
Bitcoin continues to lead the market. According to CoinGecko data, when the tariff delay was announced, BTC plummeted to a low of $106,800 over the weekend, but has since risen to $109,650, marking a 1.5% growth on Monday morning.
Even as the market gains, investors remain cautious, anticipating potential re-escalation in tariff negotiations, which could trigger sell-offs in both crypto and equities.
1) The delay in the 50% tariff on EU goods by U.S. President Trump, initially scheduled for June 1, has significant implications for the cryptocurrency finance business, as the temporary tariff postponement bolsters the crypto markets.
2) In the realm of technology and finance, the tech-driven crypto markets have shown recovery due to Trump's latest pronouncements, with Bitcoin prices reclaiming the $109,000 mark, indicating a growing interest of businesses in this sector amidst trade uncertainties.
