Bitcoin Traders React to Trump’s Tariff Delays, While Dogecoin Leads Crypto Declines
July 8, 2025 – By Shaurya Malwa
Bitcoin (BTC) posted its highest-ever weekly close near $110,000 this past Sunday, shrugging off a week filled with potential market headwinds. Despite activity from dormant whale wallets moving roughly $8 billion worth of BTC and renewed tariff drama, the leading cryptocurrency held firm in the face of thin liquidity typical of the summer holiday season.
By Tuesday, Bitcoin was steady just below $108,000 after a brief dip late Monday. Meanwhile, other major cryptocurrencies experienced some profit-taking. Solana (SOL) saw a 2.3% decrease to $149, and Dogecoin (DOGE) led declines with a 4.1% drop. Ethereum (ETH) hovered near $2,530, while XRP remained stable around $2.26. ### Market Sentiment Bolstered by Tariff Postponement
Broader market sentiment received a boost following a notable development in US trade policy. Asian equities softened but avoided widespread sell-offs after former President Donald Trump signaled a willingness to resume trade talks and postponed implementing fresh tariffs until at least August 1. The MSCI Asia-Pacific index traded flat despite new levies hitting Korea and Japan. Investors’ risk appetite improved as the Japanese yen weakened, the South Korean won strengthened, and the euro gained on rumors of a possible European Union trade agreement.
“Markets are hovering around record highs again,” said Augustine Fan, Head of Insights at SignalPlus. He added that the earnings season, which begins this week, is expected to influence sentiment positively. “CEOs are likely to provide bullish guidance after last quarter’s shock from tariff headlines,” Fan noted.
Tight Correlation Between Crypto and Equities
Crypto assets continue to closely track equity markets, with Bitcoin’s correlation with the S&P 500 (SPX) nearing local highs. Fan suggested the summer could remain “hot but quiet,” with the possibility that market-moving events could still emerge unexpectedly in the seasonally thin trading environment.
Ryan Lee, chief analyst at Bitget Research, expressed bullish expectations for Bitcoin in the weeks ahead: “Bitcoin is well-positioned to break its previous all-time high of $112,000 in July, with upside potential toward $120,000 by month-end. Institutional demand and steady inflows into Bitcoin ETFs are key factors sustaining momentum.”
Lee also expressed confidence in Ethereum’s near-term prospects. “ETH is strengthening, supported by ongoing whale accumulation and a favorable outlook under the current crypto-friendly US administration. We could see it test $3,000 by the end of July, although market volatility remains a risk.”
The analyst added that the anticipated Federal Reserve rate cut slated for September could provide an additional catalyst for both Bitcoin and Ethereum price rallies.
Performance Snapshot of Major Cryptocurrencies
| Cryptocurrency | Price (USD) | Change (%) |
|---|---|---|
| Bitcoin (BTC) | $108,346.62 | -0.65% |
| Ethereum (ETH) | $2,549.40 | -1.09% |
| XRP | $2.2587 | -0.51% |
| Solana (SOL) | $149.05 | -2.16% |
| Dogecoin (DOGE) | $0.1675 | -3.23% |
Beyond Bitcoin, the crypto market showed uneven performance. While Bitcoin and Ethereum stabilized close to their recent highs, altcoins like Solana and Dogecoin faced sharper declines amid profit-taking. Notably, Dogecoin’s 4.1% drop made it one of the most pronounced among top tokens. Other altcoins including Cardano (ADA) and Avalanche (AVAX) also retreated slightly.
Looking Ahead
With the crypto market’s performance closely tied to macroeconomic events and equity trends, the coming weeks are crucial. Observers will watch closely for developments in trade policy, corporate earnings, and Federal Reserve signals, which could steer volatility and price directions.
As institutional interest and regulatory clarity continue to improve, Bitcoin’s path to new highs seems increasingly plausible, setting an optimistic tone for the remainder of the summer trading season.
Shaurya Malwa is Co-Leader of CoinDesk’s Tokens and Data team in Asia focusing on crypto derivatives, DeFi, and market analyses.