In a notable development for the cryptocurrency market, major cryptocurrencies experienced a rise on Sunday morning following hints from U.S. Treasury Secretary Scott Bessent regarding impending trade deals before the July 9 Liberation Day tariff deadline.
Bitcoin, the leading cryptocurrency by market value, saw a gain of over 1%, briefly surpassing $109,000. Similarly, XRP, focusing on payments, and Solana’s SOL token both increased by more than 2%, while the popular meme token Dogecoin (DOGE) rose by 3%. Ethereum’s ether, the second-largest cryptocurrency, also climbed by 1.5%, reaching $2,550, according to data from CoinDesk.
In a recent interview with CNN, Bessent stated that the U.S. is on the verge of finalizing several trade agreements ahead of the July 9 deadline, which marks the expiration of a temporary pause on higher tariffs originally announced on April 2.
“President Trump will be sending letters to some of our trading partners indicating that if progress isn’t made, they will revert to the initial April 2 tariff level on August 1. Thus, we anticipate a flurry of negotiations and agreements within a short time,” Bessent remarked, as reported by Reuters.
Bessent reinforced that July 9 is the firm deadline for negotiations; otherwise, the higher tariffs announced in early April will come into effect on August 1.
“This is the timeline we are working with. If countries wish to expedite negotiations, they are welcome to do so. Conversely, if they choose to revert to the previous tariff rates, that is their decision,” Bessent informed CNN, noting that some countries are ‘foot-dragging’ in reaching agreements.
Since the beginning of his administration, President Donald Trump has prioritized initiatives to enhance U.S. wealth through tariffs on imports, a strategic approach aimed at rebalancing trade relations and mitigating the U.S. trade deficit.
The president announced extensive tariffs on April 2, instituting a base tax of 10% on all trading partners, with additional tariffs on certain countries, some peaking at 50%. This so-called Liberation Day announcement led to a significant sell-off in financial markets, adversely affecting U.S. stocks and causing a sharp decline in Bitcoin, which plummeted to $75,000.
Such panic likely prompted the Trump administration to announce a 90-day pause shortly thereafter.
In the wake of this, the phenomenon of U.S. exceptionalism has re-emerged in financial markets, propelling major U.S. equity indices to new record highs. Both the S&P 500 and Nasdaq have consistently outperformed their global counterparts, with Bitcoin rallying back above the $100,000 mark.
