Global Trade Tensions Escalate with 15% Tariff Hike

The latest development in the ongoing trade tensions between the US and other countries has had an immediate impact on the cryptocurrency market. On Saturday, President Donald Trump announced a new 15% global tariff rate, which was a significant increase from the previously proposed 10%. This decision came despite the Supreme Court's ruling that invalidated earlier trade measures, stating that they exceeded presidential authority.

The reaction in the cryptocurrency market was swift and significant. Initially, Bitcoin rose about 0.5%, but it quickly reversed course and dropped nearly 1% to settle near $68,000. Ether also declined by 0.45% after the news. This sensitivity of digital assets to macroeconomic developments is a recurring theme in the cryptocurrency market.

Investors are closely monitoring these developments as trade policy shifts and geopolitical tensions often influence risk assets like Bitcoin and Ethereum. While digital assets can sometimes be seen as hedges against economic instability, short-term price movements frequently reflect investor reactions to breaking news.