The cryptocurrency market experienced a volatile start to the week, with Bitcoin (BTC) erasing its weekend gains as renewed geopolitical tensions surrounding U.S. trade policy dampened investor sentiment. After briefly touching highs above $109,600 over the weekend, Bitcoin's price slipped during the U.S. trading session on Monday. The BTCUSDT pair registered a low of $107,570 before settling around $108,064, marking a 1.13% decline over 24 hours. This price action mirrored a broader risk-off mood in traditional markets, with the Nasdaq and S&P 500 indexes both falling by approximately 1% as yields on 10-year U.S. Treasury bonds climbed towards 4.4%.

Bitcoin Price Pressured by Renewed Tariff Threats

The primary catalyst for the market downturn was the escalation of tariff rhetoric from the Trump administration. Despite previously delaying a self-imposed July 9 deadline for trade deals to August 1, the White House issued letters to Japan and South Korea, imposing 25% tariffs on certain products effective August 1. Furthermore, President Trump threatened additional levies on countries aligning with the BRICS economic bloc. White House Press Secretary Karoline Leavitt confirmed that more announcements regarding tariffs or trade agreements would be forthcoming. This renewed uncertainty directly impacts risk assets like Bitcoin, which traders often sell during periods of macroeconomic instability in favor of perceived safe havens. The immediate support level for BTC now sits near the daily low of $107,500, with a break below potentially opening the door to further downside. Resistance remains at the weekend high of around $109,650.

Altcoin Market Sees Mixed Performance Amid Uncertainty

The bearish sentiment was not confined to Bitcoin. Ethereum (ETH) also faced downward pressure, with the ETHUSDT pair falling 2.27% to trade around $2,536, after reaching a 24-hour high of $2,599. The ETH/BTC pair showed relative weakness, dipping slightly to 0.02355. Other major altcoins, including Solana (SOL) and Dogecoin (DOGE), posted declines between 1% and 3%. SOL, a recent market leader, saw its price drop to $148.70. However, XRP bucked the trend, demonstrating notable strength. The XRPUSDT pair climbed over 2% at one point, trading around $2.28. This outperformance suggests that some traders may be viewing XRP as having distinct drivers, possibly related to its specific use case in cross-border payments which could be perceived as beneficial amidst trade disruptions.

Weekend Rally Fueled by Hopes of Trade Deals

The Monday sell-off was a sharp reversal from the optimism seen over the weekend. On Sunday, major cryptocurrencies rallied after U.S. Treasury Secretary Scott Bessent hinted at the finalization of several trade deals. In an interview, Bessent suggested that the August 1 deadline would incentivize trading partners to conclude negotiations quickly to avoid the reinstatement of higher tariff levels. According to a report from Reuters, he noted some countries were 'foot-dragging' and that the deadline was firm. This news initially propelled Bitcoin above $109,000, with altcoins like XRP, SOL, and DOGE posting gains of 2-3%. This brief rally underscored the market's sensitivity to macroeconomic news and how quickly sentiment can shift. The initial 'Liberation Day' tariff announcement on April 2 had previously sent shockwaves through markets, causing Bitcoin to plummet to $75,000 before a 90-day pause was announced, allowing for the recent recovery above the $100,000 psychological level.