Crypto Market August 12: Do Kwon Trial & Trump Tariff Shock Rattle Investors

Trump Lifts 39% Tariff on Gold as Global Crypto Market Sees Volatility

The global cryptocurrency market began the week on a mixed note, with traders reacting to a series of geopolitical and economic developments — the most surprising being President Donald Trump’s abrupt decision to remove the recently imposed 39% tariff on gold imports.

The move, announced late Monday, comes just days after the U.S. government had introduced the levy on Swiss gold bars, a policy that triggered sharp criticism from industry stakeholders and rattled global markets. The decision is already sending ripples through commodities, precious metals, and digital asset sectors, as investors reassess inflation hedges and alternative stores of value.

Source: ForexFactory

Crypto Market Overview: August 12, 2025

As of Tuesday morning, the total global cryptocurrency market capitalization stood at $4.03 trillion, down 0.8% over the last 24 hours. Trading activity remained high, with daily volumes reaching $189.43 billion. Bitcoin’s dominance over the market edged at 58.7%, while Ethereum accounted for 12.7%.

A total of 18,052 cryptocurrencies are currently tracked, underscoring the sector’s growing diversity despite recent pullbacks. Among the largest gainers in the last 24 hours were Polkadot and assets in the XRP Ledger ecosystem.

Bitcoin and Major Movers

Bitcoin was trading at $118,892, reflecting a modest 0.3% decline over the previous day. Despite the dip, its market capitalization remains a formidable $2.37 trillion, with $67.88 billion in daily trading volume, solidifying BTC’s role as the primary anchor of the crypto economy.

The top trending cryptocurrencies over the last 24 hours included Zora (ZORA), Fartcoin (FARTCOIN), Succinct (PROVE), Aerodrome Finance, and Ethereum (ETH).

• Zora (ZORA) traded at $0.1204, down 2.8%, with a daily volume of $405.63 million.

• Fartcoin (FARTCOIN) dropped 17.5% to $0.8857, with $322.19 million in volume.

• Succinct (PROVE) bucked the trend, rising 9.7% to $1.60 on a strong $668.65 million volume.

Among the day’s biggest winners, RIZE surged 115.3% to $0.07194, while Codatta (XNY) jumped 113.3% to $0.01535. Liora (LIORA) posted a 99.1% gain to $0.1634.

The steepest losses were recorded by Uranus (URANUS), down 25.9% to $0.4307, Revox (REX), which fell 22.8% to $0.0207, and Useless Coin (USELESS), dropping 22.1% to $0.2034.

Source: Alternative me

Stablecoins continue to anchor liquidity in the market, collectively holding a $279 billion market cap and accounting for $141.17 billion in daily trade. The decentralized finance (DeFi) sector saw a 1.7% decline in market cap, now at $162.61 billion, representing 4% of the global crypto market.

The Crypto Fear and Greed Index registered 68, still in the “Greed” zone, though slightly lower than the previous day.

Trump’s Gold Tariff Reversal

In what many analysts see as an unexpected policy reversal, President Trump announced the removal of a 39% import tariff on gold, particularly targeting Swiss gold bars, which had been in effect for less than a month.

The original tariff was introduced as part of a broader protectionist measure aimed at bolstering domestic mining industries and reducing reliance on foreign precious metal supplies. However, the levy led to sharp price increases in global gold markets, raising concerns among jewelers, financial institutions, and central banks that rely on gold for reserves.

In a statement from the White House, Trump said the decision was made after “listening to the concerns of American businesses, financial institutions, and global allies,” adding that the move would help stabilize the commodity market ahead of the holiday season.

Gold prices had spiked sharply following the initial tariff, with some analysts warning of potential shortages in certain markets. Monday’s reversal immediately triggered a pullback in spot prices and futures, while precious metals mining stocks saw mixed reactions.

Broader Trade Context: China Tariff Delay

Trump’s gold decision comes just one day after the White House announced a 90-day extension to the existing U.S.-China tariff truce. Under the new timeline, increased tariffs on Chinese goods — previously set to take effect on August 12 — will now be postponed until November 9, 2025.

The extension was the result of negotiations in Stockholm, where both sides reached a temporary agreement to ease tensions. Part of the deal included lifting certain restrictions on rare earth exports critical to technology and defense manufacturing.

While business groups welcomed the pause, experts warn that it does not address the core structural issues at the heart of the trade dispute. “These extensions create breathing space but don’t solve the underlying problem,” said Angela Morris, a senior trade policy analyst at the Peterson Institute.

India’s Crackdown on Undeclared Crypto

Meanwhile, in Asia, the Indian Finance Ministry reported uncovering more than ₹29,208 crore in undeclared foreign assets and ₹1,089 crore in unreported cryptocurrency income for the fiscal year 2024–25.

The findings were the result of a voluntary disclosure scheme implemented after India adopted global tax information exchange rules in 2017. The policy is part of a wider push to tighten oversight of digital assets, with crypto taxation rules introduced in 2022 and further clarified this year.

Analysts believe this development could lead to more transparent crypto reporting in the region, though it may also push some activity offshore.

Crypto Market Impact

Market analysts say that Trump’s decision to scrap the gold tariff could have indirect effects on the cryptocurrency sector. Gold and Bitcoin are often compared as alternative stores of value, and any significant movement in one can influence sentiment in the other.

“With gold now facing fewer trade barriers, some capital that might have moved into Bitcoin as an inflation hedge could instead flow into the precious metals market,” said Laura Chen, a commodities strategist at Meridian Capital. “However, in the long term, both assets tend to benefit from uncertainty in traditional markets.”

The combination of tariff delays, commodity price shifts, and regulatory crackdowns in key markets has created a complex environment for investors. Despite the day’s losses, many analysts maintain a bullish medium-term outlook for cryptocurrencies, citing strong institutional interest and ongoing adoption trends.

Looking Ahead

Over the next week, traders will be watching for further signals from the White House on trade policy, as well as potential announcements from the Federal Reserve regarding interest rates and inflation outlooks.

In the crypto world, eyes remain on Ethereum’s performance after it crossed the $4,000 threshold, as well as on the DeFi sector’s ability to recover from its recent slump.

As of now, the market remains in a delicate balance — one in which political decisions, commodity markets, and regulatory changes are all playing critical roles.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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