Bitcoin Slides as New Tariffs and Strong Labor Data Hit Risk Assets

The new duties, ranging from 10% to 12.5%, take effect Friday at 12:01 a.m. ET. The Office of the U.S. Trade Representative applied the measures under Section 301 of the Trade Act of 1974, targeting nations deemed lax in enforcing labor standards. While exemptions exist for pharmaceuticals, crude oil, and specific regional trade agreements, the announcement triggered immediate volatility in risk-on assets. Bitcoin briefly touched $64,985 before attempting a fragile recovery, though market capitalization remained pressured near $1.3 trillion.

Macroeconomic headwinds further compounded the decline. Initial jobless claims fell to 187,000—the lowest level since September 1969—suggesting that the U.S. economy remains robust enough to sustain higher borrowing costs. This data prompted traders to price in a potential Federal Reserve rate hike by September. Consequently, the 10-year Treasury yield climbed to 4.70%, siphoning liquidity from the cryptocurrency market. Leveraged traders bore the brunt of the instability, with CoinGlass reporting approximately $162 million in liquidations across the crypto sector over 24 hours. As geopolitical tensions with Iran persist, Bitcoin faces a critical test at the $65,000 threshold, struggling to regain the momentum that saw it test $67,000 earlier this week.