The Trump administration introduced fresh tariffs ranging from 10% to 12.5% on imports from 60 major trading partners, impacting over 99% of U.S. trade. This move pushed Bitcoin below the $65,000 mark on Thursday, July 23, as traders reacted to the broader economic implications.

According to CNBC, the new duties replaced a temporary 10% global tariff set to expire the same day, with the Office of the U.S. Trade Representative linking the measures to inadequate enforcement against goods produced with forced labor. Bitcoin briefly dipped to $64,985 before rallying slightly above $65,000, though selling pressure soon resumed. Data from crypto.news showed a 1.5% decline in Bitcoin’s value within 24 hours, with its market cap hovering around $1.3 trillion.

Short interval trading charts revealed a series of bearish candles, accompanied by an increase in liquidations of leveraged long positions, as CoinGlass reported crypto liquidations hit approximately $162 million. Traders grappled with a renewed risk-off mood triggered by geopolitical and economic developments.

The announcement came amid a tough day for risk assets overall. The Nasdaq Composite dropped 2.2% to a four-week low, the S&P 500 fell 1.2%, and the Dow Jones sank roughly 507 points. Rising tensions between the U.S. and Iran had already cast a shadow on markets earlier, with President Trump threatening a "massive attack" on Iran following ongoing military exchanges in the region.

Labor market data further pressured Bitcoin. The U.S. Labor Department reported initial jobless claims fell by 22,000 to 187,000 for the week ending July 18, the lowest since 1969. Economists had forecast claims rising to 212,000. Continuing claims also dropped slightly, indicating layoffs remain limited despite slower hiring and trade uncertainty.

Stronger employment figures typically dampen expectations for Federal Reserve rate cuts. Interest-rate futures now factor in a possible Fed rate increase as soon as September. This sentiment was reinforced by rising oil prices and inflation worries. Treasury yields climbed accordingly, with the 10-year yield nearing 4.70%, a development that tends to weigh on cryptocurrencies by making fixed-income assets more attractive relative to riskier investments.