Crypto Remains Resilient Amid Renewed Geopolitical Tensions
Despite rising geopolitical tension and U.S. tariff threats against Canada, the crypto market held firm on Friday, with major cryptocurrencies showing limited reaction to fresh political uncertainty.
Bitcoin Dips Slightly, Market Calm Prevails
Bitcoin (BTC) dipped just 0.7% in the last 24 hours, hovering around $106,700, according to CoinDesk data. The slight move aligned with the broader CoinDesk 20 Index, which also fell 0.7%, suggesting a neutral market sentiment across major digital assets.
Notably, SUI was the only token within the index to show meaningful movement, rising 3.3%, indicating a lack of clear trend direction elsewhere in the market.
Crypto Stocks Take a Bigger Hit
While the spot crypto market stayed relatively flat, crypto-related stocks saw notable declines:
- Coinbase (COIN) dropped 6%.
- Circle (CRCL) fell 16%, adding to its 40% monthly loss since peaking near $300 on Monday.
The market pressure on stablecoin issuers and crypto exchanges suggests growing investor caution, especially amid increasing regulatory uncertainty and macro tension.
Bitcoin Miners Diverge on Performance
Bitcoin mining stocks showed mixed results:
- Core Scientific (CORZ) held steady after Thursday’s 30% surge, driven by news of a potential acquisition by AI cloud giant CoreWeave.
- Hut 8 (HUT) declined by 6.5%, reflecting a more typical response to macro volatility in mining sector stocks.
This divergence suggests that merger speculation and AI sector integration are becoming stronger catalysts for mining stocks than Bitcoin’s price alone.
Trump’s Tariff Warning: Markets Shrug It Off
U.S. President Donald Trump reignited trade war rhetoric by announcing the termination of all trade discussions with Canada, citing Ottawa’s proposed Digital Services Tax on American tech firms.
“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period,” Trump posted.
While such a move could have significant economic implications, neither traditional markets nor crypto markets responded strongly. According to Coinbase analysts, the reason may be rooted in skepticism:
- “Markets have largely disregarded the potential economic risks… because this hasn’t necessarily been reflected in the economic data.”
In other words, investors seem to believe that these tariffs won’t be as inflationary or disruptive as previous rounds, particularly given the global focus on monetary policy and interest rates.
Outlook: Calm Before the Tariff Storm?
With the July 9 deadline for potential tariff action approaching, crypto investors appear complacent for now. However, if trade tensions escalate, or if traditional financial markets react more sharply, digital assets could see increased volatility.
For now, crypto is showing remarkable resilience, but that could change quickly in a more fragile global risk environment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.