Bitcoin Remains Unfazed by Tariff Threats, PNUT Sees Surge After Musk's Comments

Francisco Rodrigues reports (all times ET unless otherwise stated) The price of Bitcoin, currently at $85,534.66, has remained steady around $108,600 over the past 24 hours, showing little response to President Trump's recent tariff announcements against multiple countries. The broader CoinDesk 20 index saw a 1.8% increase, shrugging off the trade uncertainty. In a letter to 14 nations, including key Asian partners, President Trump warned of impending tariffs starting August 1 unless trade concessions are made to the US. He also announced a 50% tariff on imported copper and up to 200% on pharmaceuticals. Traditional markets showed a muted response, with US equity indexes remaining flat and European markets opening with a slight increase, while Asian indexes closed higher. The US dollar index remains unchanged. The market's reaction suggests that the 'Trump always chickens out' trade pattern may still be in effect, where tariffs are announced but later reversed. Despite the president's statement that there will be no change to the deadline, past tariff announcements have raised inflation concerns, and this latest one comes as the Federal Reserve reduces liquidity by $40 billion monthly, according to QCP Capital analysts. Federal Reserve Chair Jerome Powell has cautioned that tariff-driven price increases might delay rate cuts, making risk assets like crypto less appealing to investors. However, fears of a US recession have subsided, with the perceived odds of it happening this year dropping to 20% on Polymarket, the lowest since January. Over the past week, cryptocurrency investment products have seen nearly $1 billion in net inflows, according to CoinShares, bringing total assets to a record $188 billion. Bitcoin funds have captured the majority of these flows, with ether, solana, and XRP funds also seeing solid demand. Combined with corporate treasuries raising funds to buy bitcoin, demand for the leading cryptocurrency remains high. Apart from exceptions like PNUT and some Grok-influenced memecoins, other altcoins are not performing as well. Bitcoin's dominance has risen nearly 12% year-to-date, now accounting for roughly 65% of the ecosystem's total market capitalization. The validity of the 'Trump always chickens out' trade ahead of the August deadline remains to be seen. Stay alert. Key Events to Watch Upcoming Conferences The CoinDesk Policy & Regulation conference will be held in Washington on September 10, allowing general counsels, compliance officers, and regulatory executives to meet with public officials responsible for crypto legislation and regulatory oversight. Limited space is available; use code CDB10 for a 10% discount on registration through July 17. Token Talk By Shaurya Malwa Derivatives Positioning Market Movements Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether