Crypto Markets Dip Amid Tariff Uncertainty Despite Rising Rate Cut Bets
Market Reaction to Dual Catalysts
Cryptocurrencies declined Friday as traders balanced new U.S. tariffs against weak jobs data boosting Fed rate cut odds:
BTC: $115,500 (-2.1%)
ETH: $3,630 (-3.8%)
SOL/XRP: -4% to -5%
S&P 500: -1.5%, Nasdaq: -2%
Key Drivers
Tariff Shockwaves (Effective Aug 7)
Canada: Import duties up to 35% (from 25%)
Brazil: New 50% tariffs
China Deal Uncertainty: Aug 12 truce expiry looms
Labor Market Cooling
July Jobs: +73K (vs. +150K expected)
May-June Revisions: 258K jobs erased
Unemployment: Stuck at 4.2%
Fed Policy Shift
September Cut Probability: 78% (vs. 37% Thursday)
Dissenting votes signal growing dovish pressure
Crypto Analyst Insights
Short-Term: Tariff-induced supply chain fears hurt miner stocks (RIOT -5%, MARA -7%)
Mid-Term: Rate cuts could propel BTC to $125K (21Shares)
Wildcard: Metaplanet’s $3.7B BTC accumulation plan may offset selling pressure
What to Watch Next Week
Aug 7: Tariff implementation
Aug 12: U.S.-China trade deal deadline
Fed Speakers: Powell (Aug 8) could cement rate path
"Markets are pricing a policy mistake—tariffs may exacerbate inflation just as the Fed pivots dovish."
